ICI rejects $14.2 billion cash bid by Akzo Nobel

Mumbai: British chemicals giant Imperial Chemical Industries Plc has rejected a $14.2 billion offer from Akzo Nobel NV of the Netherlands as too low.

Akzo, the world''s largest manufacturer of paints and coatings, offered 600 pence a share, a price that "significantly undervalues" the business, London-based ICI said in a statement.

Akzo''s primers and topcoats are found on Airbus SAS''s A380 airliner and the London Eye observation wheel.

Buying ICI, the maker of Dulux and Glidden paints, would add the second-biggest paint maker in the US and China and boost Akzo''s bargaining power with raw-material suppliers.

Arnhem-based Akzo said ICI is ``highly attractive'''' and said it''s continuing to evaluate the company.

ICICI shares hit an eight-year high of 644 pence on speculation Akzo will increase its offer. The shares were up 17 per cent or 95 pence at 640 pence as of 1:14 p.m. local time. The rise boosted ICI''s market value by 1 billion pounds to 7.59 billion pounds.