ICI tentatively agrees to sweetened Akzo offer: report

Dutch chemical group Akzo Nobel and its partner, German consumer products group Henkel are conducting a due diligence review of ICI and are expected complete the process within days. .

This follows Akzo Nobel saying that it could raise its offer for its UK rival ICI to $16.3 billion, valuing ICI''s shares at £6.70 per share, representing a a 41-per cent premium on ICI''s share price when it made its first offer..

The UK Takeover Panel has set a deadline of 9 August for Akzo Noble and reports say that it all goes well, a takeover agreement could be announced by the deadline.

Only last week, ICI had rejected an enhanced all cash $15.9-billion offer at 650 pence a share takeover proposal by Akzo and continued to maintain that even this offer undervalued the UK-based company.

In June it had turned down a 600 pence per share offer from Akzo.

The latest bid could still face opposition from regulators as a takeover of ICI by Akzo may attract the competition authorities since ICI''s Dulux paint has a 40-per cent market share in the UK, while Akzo''s Crown Paints has 14 per cent.