Dow lining up knockout bid for ICI

By KARL WEST
Updated:

 

Shares in chemicals giant ICI jumped more than 7% as City dealers said US rival Dow Chemicals is preparing to launch a £7bn takeover.

Shares in ICI raced ahead 35¼p to close at 539¾p, topping the FTSE 100 gainers, as the market buzzed with talk that Dow is preparing to offer as much as 620p a share for the Dulux paint group.

ICI declined to make any comment on the bid rumours.

The industrial giant has long been the subject of bid speculation, with Dutch chemicals group Akzo Nobel, which owns Crown Paints, seen as the most likely suitor.

Akzo prompted speculation that it would bid for ICI when its finance chief last year described the British group as a 'beautiful company'.

The Dutch group also recently sold its pharmaceutical arm Organon for £7.5bn to Schering Plough, so it has the financial muscle.

Dow is the world's biggest chemical manufacturing group, turning out products including plastics and agricultural products.

It was founded in 1897 in Midland, Michigan, where it is still headquartered.

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