Argentina's stock regulator CNV on Friday rejected as inadequate an offer from Brazil's Braskem SA to buy roughly 30% of the shares of plastics maker Solvay Indupa SAIC that are publicly traded. Braskem is Latin America's largest petrochemical company.

According to Reuters, Solvay Indupa is the Argentine-Brazilian unit of Belgium's Solvay SA, which owns 70.59% of the company. The deal would represent Braskem's first move into production in Argentina.

In a contract signed last month, Braskem would buy the stake held by Solvay. The petrochemical firm would also buy the remainder of Solvay Indupa on the Buenos Aires stock exchange, the report said.

Market regulator CNV in a statement said that Braskem's offer of $1.35 per share is in line neither with the book value of Solvay Indupa nor with average valuations during the fourth quarter of $3.92 per share. Solvay Indupa's book valuation as of September 30 was $2.81, CNV said.

The publicly traded shares of Solvay Indupa include a 16.71% stake held by Argentina's state pension fund Anses, Reuters said.