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Akzo Nobel makes bid for Sico Inc.

Akzo Nobel, Arnhem, the Netherlands, has announced a bid to acquire Sico Inc., Canada's leading coatings company. Akzo Nobel has offered $20.00 (CAD) per common share for control of Sico. The two largest Sico shareholders, who own approximately 34% of the company's common shares, have given their full support for the deal and have signed a binding commitment to tender their shares to Akzo Nobel under the terms of the offer. The Sico Board of Directors has also unanimously recommended the offer to its shareholders through a circular that was mailed to all Sico shareholders at the end of April.

Sico, headquartered in Quebec City, develops, manufactures, and markets architectural paints including brands such as Sico[R], Para[R], Betonel[R], as well as related products including Mulco[R] caulking compounds. The company, which also produces and supplies industrial coatings, employs about 1,000 people in Canada, U.S., and Mexico. Sico has been active in the coatings market for more than 65 years.

"This proposed deal underlines our strong commitment to the company's growth strategy for coatings, which involves accelerating our acquisition activity and investing in major expansion opportunities to enhance our portfolio and strengthen our global presence," said Hans Wijers, Akzo Nobel's CEO. "The proposed acquisition will provide us with a leading market position in Canada."

The offer from Akzo Nobel is subject to final shareholder approval and customary closing conditions.
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Title Annotation:Business & Industry
Publication:JCT CoatingsTech
Date:Jun 1, 2006
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