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Last Updated: Friday, 6 July 2007, 13:40 GMT 14:40 UK
Akzo Nobel gets ICI bid deadline
Dulux paint

The Takeover Panel has given the Dutch chemicals company Akzo Nobel until 9 August to table a takeover offer for UK rival ICI.

Akzo Nobel made a 7.2bn takeover proposal on 4 June that ICI rejected, saying it undervalued the company.

The Financial Times says Akzo managers have been sounding out ICI shareholders about a further offer though there has been no formal contact with the firm.

ICI has seen its share price jump 40% in the past six months.

Helping drive the share price higher has been persistent speculation that ICI was a takeover target.

Akzo Nobel has plenty of cash to spend on acquisitions, having sold its pharmaceuticals division to Schering-Plough for 11bn in cash in March.

However, one potential fly in the ointment is that Akzo already owns Crown, which has 14% of the UK paint market.

ICI owns Dulux, which has 40% of the market, and analysts said that a takeover by Akzo may raise competition concerns.

One way around competition concerns would be if Akzo sold Crown UK, analysts said.


SEE ALSO
ICI rejects 7.2bn bid approach
18 Jun 07 |  Business
ICI warns of rising cost pressure
05 May 05 |  Business
ICI price warning as profits rise
29 Jul 04 |  Business
ICI looks for growth by 2007
30 Oct 03 |  Business

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