ICI tentatively agrees to sweetened Akzo offer--WSJ
Sun Aug 5, 2007 5:59PM EDT
NEW YORK, Aug 5 (Reuters) -Britain's ICI has tentatively agreed to a sweetened 8 billion pound, or $16.3 billion, takeover offer by Dutch rival Akzo Nobel and a German partner, the Wall Street Journal reported on Sunday.
Akzo and its partner, German consumer products group Henkel, are conducting a due diligence review of ICI and are expected complete the process within days, the paper said, citing people close to the matter.
If all goes well, a formal takeover agreement would be announced by Aug. 9, the deadline set by the UK Takeover Panel, the paper said.
ICI last week rejected an improved 7.8 billion pound ($15.9 billion), 650 pence-a-share cash takeover proposal by Akzo and refused to open its books for due diligence check, saying the offer undervalued the company. It had also previously rejected a 600 pence-a-share offer from Akzo in June.
The newest bid is around £6.7 per share. Though the talks are friendly, the situation is fluid and the agreement is subject to change, the paper said.
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