14 March 2007 09:20 [Source: ICIS news]
LONDON (ICIS news)--UBS has raised its target share price for Akzo Nobel by €10 ($13) to €66 after the sale of its Organon Biosciences business.
“The company is planning a 10% share buyback (for which they already have approval for) with a further 10% likely, and will look at other tax efficient ways of returning more,” the bank’s analysts said in a note to clients late on Tuesday.
“Acquisitions continue to be the main target for use of the proceeds,” they added.
The analysts said that following the divestment, the company would have €11bn on the balance sheet and a stable, cash generative portfolio.
“In our opinion it would make Akzo Nobel an attractive takeover target, unless the valuation improves from the current level.”
UBS kept its Buy 2 rating for the company.
Akzo Nobel’s share price was at €54.03 at ?xml:namespace> on Wednesday, down 0.15% on the previous close.
($1 = €0.76)
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