ICI opens books after £8.1bn offer

AKZO Nobel, the Dutch chemicals company, moved a step closer to taking over ICI yesterday when the UK group agreed to open its books following a raised £8.1 billion indicative offer from the European predator.

A statement from ICI revealed that Akzo was willing to pay 670p a share, plus up to an additional 9.95p in shareholder dividends. The dividends would be paid in two stages over the coming months. ICI said it would now allow the Dutch firm to undertake "certain limited due diligence" to enable it to table a formal bid.

Akzo has until Thursday to make a formal offer under a Takeover Panel deadline, although ICI is understood to be willing to ask the panel for an extension if the Dutch group needs more time to put its bid together.

Andrew Benson, Citigroup analyst, said that he expected a formal offer at "roughly" 670p could be made this week.

ICI said: "The proposal is subject to a number of pre-conditions, including completion of due diligence. The board of ICI has agreed that Akzo can undertake certain limited due diligence, which ICI expects to be completed within a few days."

Shares in the group rose 10p to 641.5p despite speculation Akzo may struggle to get shareholder support for the higher offer.

Dow Chemicals, the US group, is believed to be mulling a last-minute move for ICI or Akzo.

The Dutch company has been circling ICI for weeks and tabled a 600p proposal in June. It had a second 650p approach rejected last week. At the time, Alan Brown, ICI's chief financial officer, insisted the "door remained open" for more talks.