ICI rejects new offer from Akzo Nobel/Henkel

ICI has rejected a new cash offer bid of 650p a share from Akzo Nobel, saying it did not reflect the full value of the UK chemicals group (see FT article). The revised Akzo offer valued ICI at about £7.77bn. Some analysts are viewing ICI's strategy as risky.

The raised bid was possible through a deal with Henkel (German maker of Persil washing powder and TheraMed toothpaste). If the bid were successful, Akzo would sell on ICI’s adhesives and electronic material businesses to Henkel.

Akzo Nobel own the paper chemicals group, EKA Chemicals and National Starch are part of ICI.

ICI reports interim results on Thursday. Akzo Nobel posted their results last week.