ICI shares shoot up 8.0% on bid speculation

03 April 2007 17:08  [Source: ICIS news]

LONDON (ICIS news)--ICI’s shares rose 8.0% on the London Stock Exchange on Tuesday afternoon as bid speculation for the paints and specialty starch maker mounted.

Traders linked ICI with US chemicals giant Dow Chemical according to reports but a move by Dow was discounted by financial analysts, particularly since the ICI share price had been lifted on earlier bid speculation.

ICI has been widely seen as a good fit for Dutch coatings and chemicals maker Akzo Nobel particularly following the divestment of its Organon Biosciences businesses to Schering-Plough for €11bn ($14.5bn).

The ICI share price kicked up following one large trade just before 14:00 GMT and rose rapidly later in the UK afternoon climbing by 8.0% at one stage to 544.5 pence. At 15:29 the shares had eased back to 534 pence up 5.95% on the day.

An ICI spokeswoman said ICI did not comment on market speculation.

The ICI share price had risen from 350 pence a year ago or by 55.6%.

By: Nigel Davis
+44 20 8652 3214

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