Monday July 30, 09:21 AM
ICI rejects higher Akzo Nobel bid worth 7.8 billion pounds
LONDON (AFP) - British chemicals group Imperial Chemical Industries (LSE: ICI.L - news) (ICI) said Monday it had rejected an improved takeover bid from Dutch rival Akzo Nobel (Amsterdam: AKZA.AS - news) worth 7.8 billion pounds (11.57 billion euros, 15.81 billion dollars).
In early London trade, the share price of ICI jumped by 6.85 percent to 616.5 pence in reaction to news it had turned down the bid, which compared to a previous offer last month worth 7.2 billion pounds.
"Imperial Chemical Industries confirms that it received a further indicative proposal from Akzo Nobel under which it would acquire ICI for 650 pence per share in cash," ICI said in a statement.
"The board of ICI considered this revised proposal and unanimously rejected it on the grounds that it failed to recognise the full strategic value of ICI," it added.
ICI said discussions between both parties were continuing.
Akzo Nobel, which owns Crown Paints in Britain, has said it believes ICI would represent a highly attractive addition to its business following its sale of healthcare business Organon BioSciences for 11 billion euros to US rival Schering-Plough in March.
ICI sold its troubled flavours and fragrance unit, Quest, for 1.2 billion pounds late last year, leaving the slimmed-down group a better fit for any company wanting to expand into the highly lucrative coatings business, analysts have noted.
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