Imperial Chemical Industries Share Discussion Threads

[gbchak] 14/6/2007 14:50

Pete, if no bid materialises, even though is a sound company to hold on fundamentals, i guess we will see this back down towards 500p.. this is easily possible if sentiment in the markets shifts to a negative bias.. don't forget we just came from a touch over 500 as recent as last week only!

There has been a steady stream of buying today although no phenomenal overall volume.. it's more a case of not many sellers.. fingers crossed for some fireworks as we can expect a decent mark-up if we get one bidder.. no doubt the city will expect an auction to the highest bidder if that happens..

[peter119] 14/6/2007 14:47

vol picking up pace,be interesting to see vol at 3.30pm,and share price close at highs as it did yesterday.

[peter119] 14/6/2007 14:42

"gbchak"
agree whole heartadly,but also one would have thought, any would be bidder,would act now rather than wait,mostly because of the acquisition trail that i.c.i. are deploying.even if that bid does not arrive, we are in a no loss situation,what a managerial team i.c.i. have,probebly the envoy of many a company.

[gbchak] 14/6/2007 14:33

no worries mate,

speculation has intensified of late, but that does not always mean a bid is forthcoming.. there has been persistent rumours that ICI was getting taken-out for quite some time now..

once the shares decisively break the old highs then we could see the bid speculation vindicated.. afterall the higher the share goes the more pressure any potential bidder will be under to come in at a respectable premium to the recent price and the more they overall have to pay to make any acquisition..

the market was looking at a take-out price of around 600p around Dec/Jan.. now the price has gone up and the market for private equity deals at healthy premiums the city are now looking at around 650p minimum.

Akzo probably does have ICI in its sights but i imagine they are waiting to get their sale proceeds together from their recent sale before making a move.. that puts a question mark on the other touted bidders, as one would imagine they should move sooner rather than later if their interest in acquiring ICI is real..

a lot of if's and maybe's still, but i can see this stockmarket darling going the same way as Hanson now the turnaround is complete..

[peter119] 14/6/2007 13:23

"gbchak"
thankyou very much for the artical,i appreciate your time in posting this,i do believe we will see that bid within 1 week

[gbchak] 14/6/2007 13:10

there is nothing more than general market commentary citing increased speculation that a takeover was imminent.. i did however come across an old article in the times which although old news was interesting as the chief of AKZO refused to rule out a bid for ICI:

Cash-rich Akzo refuses to rule out bid for ICI
Robin Pagnamenta

Akzo Nobel, the Dutch chemicals company, yesterday refused to rule out using some of the €11 billion (£7.5 billion) proceeds from the sale of its medicines business to fund a bid for Britain's ICI.

"We will look at all targets that make strategic sense," Hans Wijers, the chief executive, told The Times.

Asked if the possible targets might include ICI, he declined to comment directly on individual companies but said: "Any companies where a combination makes sense and would be value-creative, we will look at."

Akzo Nobel announced yesterday that it has agreed to sell its Organon BioSciences unit to US pharmaceuticals giant Schering Plough as part of an effort to focus on its core chemicals and coatings businesses. It is expected that the deal will be completed in the second half of the year.

Mr Wijers said that, assuming the Organon sale proceeds smoothly, Akzo's first priority will be to deal with the company's €2 billion pension liabilities and to clear outstanding debts of €1.1 billion.

The remaining €7.9 billion would then be used to fund acquisitions and return cash to shareholders, he said. "We have a very strong balance sheet and we can now focus all our attention on acquisitions across the globe."

Mr Wijers said that the group's acquisition strategy would be based on what he described as three "strategic arguments": access to compelling technology as well as exposure to emerging and mature markets.

ICI's market capitalisation is about £5.8 billion.

James Knight, an analyst at Collins Stewart, said that acquiring ICI would be a logical next step for Akzo Nobel.

"It would create by far the largest paints and coatings business in the world, give it access to great brands such as Dulux and strengths in rapidly growing emerging markets."

He added that regulatory hurdles were limited, although Akzo Nobel would probably need to dispose of its Crown paints business in the UK if it made a play for ICI.

As well as ICI, other possible targets could include American groups Valspar or Sherwin-Williams.

However, analysts pointed out that any delay could attract interest in Akzo itself from private equity bidders.

Akzo Nobel employs 61,880 people globally and operates subsidiaries in 80 countries. Revenues in 2006 totalled €13.7 billion.

Mr Wijers said that the decision to sell the medicines business was made very recently. He said that Fred Hassan, Schering Plough's chief executive, had approached him just "two weeks ago" about a possible deal.

The acquisition of Organon by the US pharmaceuticals giant represents another round of consolidation in the international prescription drugs industry.

A spokesman for ICI declined to comment. However, she pointed out that ICI has its own acquisition strategy after the sale of Quest International, its flavours and fragrances business, to Switzerland's Givaudan for £1.2 billion. The deal was completed on March 2.

ICI is keen to expand its presence in high-growth emerging markets as well as by acquiring new technology. It currently employs about 30,000 people and had sales in 2005 of £5.8 billion.

[peter119] 14/6/2007 11:40

any one seen ant articals today

[peter119] 14/6/2007 10:09

1mill traded every 30 mins,looks good for £5.50

[peter119] 13/6/2007 17:17

what is encouraging is that i.c.i. has finished on day high,i hold 3000,going to top up tomorrow further 1500.even if the bid does not come,a solid solid solid stock

[whatwoman] 13/6/2007 14:21

Thanks for the info gbchak.

[gbchak] 13/6/2007 12:40

PPG are a yank outfit similar to Dow but smaller...



there has been a lot of action in the last few days in ICI, really does look as if things are afoot.. the price and volume normally always confirm this.. will be intresting to see how things shape-up.. especially if one of the suitors bids.. the others will then be under pressure to take action or be flushed out..

ICI certainly does look like a prize purchase, IMHO i believe it's a matter of time when an announcement is made.. Good Luck and DYOR as ever..

[whatwoman] 13/6/2007 12:05

I know that Akzo, Basf, Dow Chemical, and Reliance industries of India are possible/potential bidders of ICI, but who are PPG Industries. Where are they based?
Good fortune to all holders.

[gbchak] 13/6/2007 10:34

here are some snippets from some market commentators:

Independent (yesterday):
Bid stories at the paints and chemicals group ICI have done the rounds countless times in recent months, but the word in the market yesterday was that German rival BASF is considering making an offer for the company that will begin at more than 600p.

ICI has long been considered a top bid prospect but until now the favourites to make a bid have always been Akzo Nobel, the Dutch group, and Dow Chemical. With traders' attention focused on bid talk in the energy sector, ICI crept up the blue-chip leaderboard all afternoon, and by the close the shares were 11.5p better at 518.5p, with almost treble the average daily volume changing hands. Traders have their fingers crossed that a first bid could lead to all three battling over ICI.

FT (today):
ICI, the speciality chemicals company, added 1.1 per cent to 523¾p, on bid rumours, which were stoked by a Merrill Lynch note which said Dutch company Akzo Nobel had the firepower to buy any of its competitors, including ICI.

The Times (today):
ICI rose 5½p at 523½p on talk that it could be vulnerable to companies other than Akzo Nobel, its mooted suitor for the best part of a year. BASF and PPG Industries were both suggested as potential bidders.

Shares in the chemical group were also supported by research from Merrill, which argued that Akzo "has the ability to acquire any of its major rivals". ICI may also turn predator with a bid for Finnish peer Kemira, and could afford to give about £2 billion back to shareholders if deals do not emerge, the broker said.

[peter119] 12/6/2007 22:13

are you all insain,i.c.i.is worth min £8.00 per share, in any takeover.
upside with this company with its present management team is more than upbeat to say the least,also bear in mind they might be of loading there pension commitments,adding more to the all ready generous cash pile,there only problem is with the £ being so strong this could have an effect on there nxt qtr figs,
by as much as 15m

[merob] 12/6/2007 19:43

Tres merde!!

[ciderosie] 12/6/2007 14:24

According to the advfn news round up today there are vague bid rumours again, plus they were tipped this morning.

[rcoates96] 12/6/2007 14:02

Could be nice for those hoping for a bid too .... long at an average of £5.20. I just think its got a base at around £4.90 with no bid and an upsdide to £6.20 to £6.50 for a contested bid. Seems like good odds to me.

[whatwoman] 12/6/2007 09:05

Yes peter119, heavy trading indeed. I have given up expecting too much as these come and go and the market seems to be doing this to a variety of companies. Almost like a carousel.
Must be nice for the marketmakers.

All the best to holders.

[peter119] 12/6/2007 08:39

"whatwoman"
something going on above average volume for past 2 days trading.

[peter119] 12/6/2007 08:06

"whatwoman"
nice top up,lets hope for the share price to carry on north.

[whatwoman] 11/6/2007 09:07

Hello mrx9000
No, I do not hold any BGY,as I have always been unsure how any company is going to cope with the huge cost of decommissioning out of date nuclear power stations. However, looking at the figures currently on ADVFN, it seems to be very profitable and the p/e is low.
Need to look deeper into this one when time permits.

[mrx9000] 09/6/2007 23:12

WhatWoman: yes i hold northumbrian water too... how about BGY also ?

[peter119] 08/6/2007 11:56

"been a bit quiet here for a while,awaiting 2nd qtr figs.

[whatwoman] 08/6/2007 09:13

Have started buying again in small quantities ICI, Johnson Matthey, Northumbrian Water and BG.