ICI rejects Akzo Nobel’s improved offer

30 July 2007 07:45  [Source: ICIS news]

SINGAPORE (ICIS news)--UK paint maker ICI on Monday rejected Akzo Nobel’s improved offer of 650 pence per share in cash.

The bid was raised after Germany’s Henkel agreed to buy ICI’s adhesives and electronic materials businesses if Akzo succeeded in acquiring the UK firm, the Dutch major said in a statement.

Akzo - the world’s largest paint and coatings producer - said that its agreement with Henkel will allow both companies to focus on the businesses that offer them most synergies and be able to return more cash to its shareholders.

However, ICI rejected the offer as it did not reflect the full value of the company, Akzo said.

In mid-June, Akzo Nobel made its first bid at 600 pence per share, valuing ICI at £7.2bn ($14.7bn/€20.1bn). A month later, on 6 July, the UK Takeover Panel issued a “put up or shut up” order against Akzo Nobel following a request from ICI.

Akzo Nobel’s primary objective was to buy ICI’s coatings business which it could add value to, spokesman Tim Van Der Zamden said.

“The 9 August deadline still stands,” the spokesman said, adding that talks with ICI will continue and it was still too early to go hostile.

“It’ll be an intensive situation in the next few days,” Van Der Zamden said.

($1 = €0.73/£0.49)

By: Florence Tan
+65 6780 4359

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