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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.

ICI rejects 7.2bn bid approach
18 Jun 07 |  Business
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05 May 05 |  Business
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29 Jul 04 |  Business
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30 Oct 03 |  Business

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