Imperial Chemical Industries Share Discussion Threads

[ride daice] 21/6/2007 09:27

If nobody else puts in a bid then 600p looks like a good deal to me.

[peter119] 21/6/2007 09:10

right or wrong,probebly wrong sold remainder of ici,very good prof,puts me in good position to purchase other stock,when the melt down happens.

[whatwoman] 20/6/2007 09:16

Akzo's boss is off to the USA to see if his major investors will back a higher offer for ICI. A very good sign for ICI's shareholders. ICI is now in play and there is no going back.
Have added a small up position to my holdings.

[gbchak] 20/6/2007 07:55

from today's FT report, it appears, ICI STRONGLY believes the sum of it's parts is SIGNIFICANTLY undervalued in relation to AKZO's bid.. if the City are convinced we may see further upside toward 650-675.. another interesting day instore as ICI effectively try and put the comany on the block in today's investors day..

[peter119] 20/6/2007 07:55

it will be interesting to see what c.e.o. pitches the share price at for akzo,i would say he will be looking at £7.00+.but without a bidding war,"will akzo play ball"?
i can not see private equity entering the fray nor basf,"but may see dow chemical.

any thoughts ladies and gents.

[donkeystone] 19/6/2007 22:18

Standard Life took an early stand against Mittal in the cs. takeover and were ultimately proved right.

DYOR

ttfn

[sagem] 19/6/2007 21:21

TAKEN FROM CITY P.M.COM TONIGHT
SHARES in chemicals giant ICI rocketed

yesterday in the wake of a £7.2bn bid by

Dutch rival Akzo Nobel as the market took

the view that it would make a higher offer.

ICI stock closed up 15.7 per cent at

635p, valuing the company at £7.6bn.

Brokers thought ICI would eventually go

for between 650p and 700p, valuing the

business as high as £8.4bn.

Akzo confirmed yesterday that it had

offered 600p a share for ICI, which the

British company turned down because it

"significantly undervalues the business".

ICI chief executive John McAdam

toured the City yesterday to get support

for his board's position.

Investor Standard Life, which holds 5 per

cent of the firm, publicly backed McAdam.

Standard Life's head of UK equities David

Cumming said: "A decision turning down

a 600p-a-share offer makes perfect sense."

He added that a fair price for ICI would be

"well in excess of 700p a share, given the

synergy available to the potential bidders".

Akzo said yesterday it would "continue

to evaluate all strategic opportunities".

Analysts say Akzo's move may flush out

other bidders for ICI, such as BASF,

DuPont and Dow Chemicals.

[peter119] 19/6/2007 19:45

come on "akzo"up the anti,you can afford it,whats another couple of billion.

[peter119] 19/6/2007 18:01

basf,i dont think will enter as already done a few acquisitions them self's this year,akzo look favourite with all cash offer,iwould pitch at £6.75p

[gbchak] 19/6/2007 15:47

if no other bidders enter then 650-675 to AKZO
if 1 other enters then 675-725
if 2 others enter then 725-750 circa

IMHO, good luck to all.

[landereo] 19/6/2007 15:47

I'll go for 720

[sagem] 19/6/2007 15:34

So what price per share will ICI be taken out by...any suggestions

[unknown trader] 19/6/2007 12:56

June 19 (Bloomberg) -- Akzo Nobel NV, the world's largest maker of paints and coatings, may raise its 7.2 billion-pound ($14.2 billion) bid for Imperial Chemical Industries Plc after being rejected by the U.K. maker of Dulux and Glidden paints.

ICI would add $9.6 billion to Akzo's $18.4 billion in annual sales, and a merger would generate as much as $362 million in savings, Collins Stewart analyst James Knight said. Akzo could combine the companies' coatings units and achieve greater bargaining power with suppliers, analysts said.

``Akzo will come back with a better offer because the deal makes sense,'' said Andrew Lynch, who helps manage $11 billion at Schroder Asset Management in London. ``A bid from Akzo would be difficult to match because they can afford to go higher.''

BASF AG, Dow Chemical Co. and India's Reliance Industries Ltd. are other possible suitors, said Evolution Securities analyst Peter Cartwright in London, who has an ``add'' rating on ICI. Netherlands-based Akzo may need to pay 700 pence a share to ``keep other bidders out,'' Cartwright said. That price would be 17 percent more than yesterday's 600 pence cash bid and 28 percent higher than ICI's June 15 close.

Shares of ICI were trading up 7.5 pence, or 1.2 percent, at 642 pence as of 8:20 a.m. in London. The stock jumped 16 percent to an eight-year high yesterday, boosting the company's market value by more than 1 billion pounds to 7.63 billion pounds. Shares of Akzo were little changed at 60.65 euros for a value of 17.4 billion euros ($23.4 billion).

Akzo Nobel spokesman Tim van der Zanden said he wouldn't discuss ``the next step, if there is one.''

`Coatings Behemoth'

ICI, based in London, is the second-biggest paint maker in China and the U.S. Akzo, whose primers and paints are used on Airbus SAS's A380 airliner, said it will continue to evaluate ICI, which remains a ``highly attractive'' company.

Akzo's $14.4 billion disposal of drugs unit Organon will give it enough cash to ``comfortably'' purchase any rival, Merrill Lynch & Co analyst Fraser Hill said in London.

Akzo is currently the No. 9 paints supplier in the U.S., Hill said. A combination would create a ``coatings behemoth'' that's better placed to target growth markets such as Asia, said Knight, who has a ``hold'' rating on ICI.

``Akzo can up its price,'' said Stuart Fraser, who helps manage $39 billion at Brewin Dolphin in London. ``I suspect most institutional investors wouldn't be looking for less than 700 pence. There are two or three other companies that could well be interested.''

Rival Unlikely

A rival private equity bid isn't likely, Schroder's Lynch said. Akzo itself may be a target for a takeover, given its cash position following the sale of a drug unit, says Markus Mayer, an analyst at Munich-based HVB Equity, who has a ``buy'' rating on the company.

``Akzo is forced to take action in the current environment,'' said Mayer. ``It remains to be seen whether this is the final word.''

ICI spokeswoman Regina Kilfoyle, BASF spokesman Daniel Smith and Dow Chemical's Chris Huntley declined to comment.

Akzo makes Crown and Sikkens paints as well as finishes for automobiles and chemicals for paper. Under Chief Executive Officer Hans Wijers, the company reported a 20 percent jump in profit last year.

``Akzo will be able to pay the highest price if there was a rival bid because of the cost savings it can get,'' said Collins Stewart's Knight. The Dutch company may come back with an offer of 650 pence, he said.

Akzo's bid is equal to 1.5 times sales. That compares with the 2.2 ratio paid by Schering-Plough Corp. for Akzo's Organon, and the 1.7 ratio agreed to by Saudi Basic Industries Corp. for General Electric Co.'s plastics unit. The approach ``significantly undervalues'' ICI, the company said.

European Dominance

The merger would give Akzo more than 60 percent of the European market, and may prompt antitrust regulators to demand the sale of units, Mayer said.

ICI was formed in 1926 when four chemical companies merged to create a bellwether of British industry. It helped develop the anti-malarial drug paludrine as well as perspex. One of the four companies was Nobel Industries, whose founder Alfred Nobel invented dynamite. ICI made 100 acquisitions through 1987 and spun off its drugs and agricultural operations as Zeneca in 1993.

``We see consolidation in the global paints market as inevitable,'' said Andrew Benson, an analyst at Citigroup in London, in a report today. He has a ``buy'' recommendation on both stocks. ``Consolidation of these major players looks feasible.''

[whatwoman] 19/6/2007 09:42

Added £100 to my position yesterday. Was going to do the same again today, but it has gone up. I am waiting and watching to see if I can top up at a lower price. If it goes down to £6, I will buy heavily.

[peter119] 19/6/2007 08:32

"leaders"
you wont have to wait that long,encouraging little volume.s.p strong

[leadersoffice] 19/6/2007 08:05

long term hold this will fly

[hectorp] 19/6/2007 07:54

Fantastic short candidate IMO? especially if it rallies today.
Odds of another bid over a couple of weeks are quite slim.
Chance to short down to 600 -ish .

[peter119] 19/6/2007 07:02

well here we go again

[rcoates96] 19/6/2007 06:48

Intersting to see that Threadneedle purchased 760,000 CFD's at £6.36 yesterday. Talk about horses and stable doors ...

[rcoates96] 19/6/2007 06:42

Your prediction was a good one Peter. Like you, I am selling in tranches (thirds rather than quarters) although I prefer to time them according to events rather than prices:
Yesterday: 1st 3rd
New bid emerges: 2nd 3rd
Competing bid: 3rd 3rd

No bid (and here, like you I have a trailing prices stop of £6.00): Sell

[peter119] 18/6/2007 16:58

well i did predict a close of 6.25-6.50,what tomorrow brings"who knows",but i can see a further spike in the s.p,as high as 6.75-7.00 TOMORROW

[peter119] 18/6/2007 16:36

Not a bad day,have known better. lol

[flateric] 18/6/2007 15:57

Good call, Peter. I knew there was action when the group of pre-alerts came up. I didn't expect a gap like that, though!