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ICI snubs second takeover move.


DULUX paint maker ICI has snubbed a second higher takeover approach from Dutch suitor Akzo Nobel worth nearly pounds 7.8bn, it was confirmed yesterday.

Akzo said ICI had rejected the new 65op a share proposal because it failed to reflect the full value of the company.

ICI, which has around 3,500 staff in the UK, turned down an initial pounds 7.2bn approach from Akzo in June as major shareholders are reportedly unwilling to consider an offer below 7oop for the business.

Akzo, whose brands include Crown Paints, is keen to add ICI's paints business to its own and plans to sell ICI's adhesives business to German chemicals firm Henkel should the takeover go ahead.

It has struck an exclusivity deal with the German business over the sale and says the tie-up will allow more cash to be returned to shareholders.

The Dutch firm has been seen as a likely bidder for ICI since it agreed to sell its Pharmaceuticals unit Organon BioSciences to Schering-Plough for nbn euro (pounds 7.47bn) in March.

Some of the shareholders are said to be concerned that Akzo may overpay for the business and the Dutch firm said: "Whilst discussions continue, Akzo Nobel will remain financially disciplined."

A statement from ICI said: "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."
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Title Annotation:Business
Publication:Daily Post (Liverpool, England)
Date:Jul 31, 2007
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