Dutch chemical giant Akzo Nobel is in the final stages of preparing a take-over bid for British chemical group Imperial Chemical Industries (ICI), The Daily Telegraph said Saturday. The newspaper said Akzo Nobel, which owns Crown Paints in Britain, has instructed the investment bank Morgan Stanley as adviser to the bid.
The bid, which the paper claimed was "at an advanced stage," could top seven billion pounds (10.3 billion euros, 13.8 billion dollars), it added. Akzo Nobel in March sold its healthcare business Organon BioSciences to Schering-Plough for 11 billion euros, which was widely seen as giving it more room to bid for ICI.
Morgan Stanley also acted as adviser on that deal. ICI, famous for its Dulux brand paint, has been at the centre of take-over speculation since April, when shares jumped as rumours of a buyer swirled.
Akzo Nobel has long been considered a likely bidder but analysts have predicted that its US rival Dow Chemical could also come in. US coatings maker Vaspar and DuPont have also be mentioned, prompting speculation about a bidding war. ICI sold its troubled flavours and fragrance unit, Quest, for 1.2 billion pounds late last year.
The disposal of debt-laden Quest left the slimmed-down group a better fit for any company wanting to expand into the highly lucrative coatings business, analysts said.
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