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Further Proposal from Akzo Nobel Rejected by ICI

By Kerry Pianoforte | August 8, 2007

ICI rejects Akzo Nobel proposal.

UPDATE:  Akzo Nobel has confirmed that it has made a further indicative proposal to the Board ICI under which Akzo Nobel would acquire ICI for 670p per share in cash. In addition, ICI shareholders would receive a second interim dividend of up to 5p per share
paid pro rata by reference to where the completion date of the proposed offer falls between July 1, 2007 and December 31, 2007.

According to published reports, the board of ICI has agreed that Akzo can undertake certain limited due diligence, which is expected to be completed within a few days.

Akzo Nobel was able to make an increased offer proposal after it had entered into an exclusive arrangement with Henkel KGaA for the sale, following completion of its proposed offer, of ICI’s adhesives and electronic materials businesses.

Akzo Nobel and Henkel have negotiated a back to back agreement relating to this proposed sale which, subject to the approval of Henkel’s Shareholders’ Committee, they would intend to execute immediately prior to the formal announcement of an offer by Akzo Nobel.

According to a statement released by Akzo Nobel, the company continues to believe that ICI would represent a highly attractive addition to its coatings business. Akzo Nobel’s increased proposal would provide ICI shareholders with a 40% premium to ICI’s share price of 464.25 pence on March 9th, 2007, the last business day prior to Akzo Nobel’s announcement in relation to the disposal of Organon BioSciences. Akzo Nobel continues to evaluate its options at this time.