13 August 2007 15:15 [Source: ICIS news]
By Mark Watts and Jeanne Lim
(Releads, recasts story throughout and adds latest share prices in final paragraph)
LONDON (ICIS news)--Akzo Nobel CEO Hans Wijers is sure ICI's shareholders can be convinced the takeover is a good idea, he said on Monday.
“We have created a perfect platform to engage with shareholders and are confident we can convince them it’s a good idea,” Wijers said after ICI accepted a cash offer valuing its shares at 670p each, totalling £8bn ($16.3bn).
While ICI is to become part of Akzo Nobel, Wijers told a London press conference the branding of the two companies has not yet been decided.
The deal is expected to take effect during late November or early December but first has to be approved by Akzo Nobel's shareholders.
There would be job losses but the numbers and location would not be announced until the deal was finalised. Redundancies would be considered on the best person for the job basis and it was possible that Akzo Nobel staff could lose their jobs as well, said Wijers.
“I’d be very surprised if you did not see ICI people in leading positions in the new company,” he added.
In an earlier webcast, Wijers said the two companies fitted very nicely together because Akzo Nobel was very strong in Europe and eastern Europe while ICI played a key role in ?xml:namespace>
ICI CEO John McAdams described the takeover announcement, which ended weeks of speculation during which the UK coatings company rejected the Dutch firm’s bid twice, as a day of “mixed feelings”.
The bid represents a premium of approximately 22% to the closing price of 549p a share on 15 June, the last business day prior to ICI’s announcement that it had been approached by Akzo Nobel.
The acquisition was expected to generate savings of €65m in raw material costs in coatings through scale effects, €65m in streamlining operations and an additional €150m in administrative and corporate synergies.
These would counteract €315m of pre-tax implementation costs for combining the businesses.
($1 = £0.49/$1 = €0.73)
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