ICI Rejects Takeover Bid From Akzo

The board of ICI has rejected a £7.2-billion ($14.2 billion) takeover bid by Akzo Nobel. Akzo approached ICI to discuss a possible cash offer for the company on June 4. ICI's board unanimously rejected the proposal "on the grounds that it significantly undervalues ICI," ICI says. "The Board is very confident in the group’s strategy and strong growth prospects," ICI says. Akzo says it "will continue to evaluate all strategic opportunities, including ICI, based on a disciplined and value-driven approach to earnings and returns over cost of capital." Akzo says, however, that there is "no certainty that any further proposal will be made to the board of ICI or that any offer or transaction will result."