Akzo Nobel has been given extra time by the Takeover Panel to make a formal £8.1 billion offer for ICI.

The Dutch chemicals group was working to a deadline of 5pm today to launch a firm bid for the British maker of Dulux paints. But in a statement, the Takeover Panel, which presides over mergers and acquisitions in the UK, said it had extended the deadline until 10am on Monday.

If Akzo does not make a formal bid by the new deadline, and instead walks away, it will be forbidden from bidding for the British group for six months.

Akzo, which makes Crown paints, was given access to ICI's books on Monday after agreeing to raise its bid to 670p a share. It was the second time it upped its offer in a week in an attempt to clinch a deal.

Akzo has been able to increase its offer due to the involvement of Henkel, the German consumer products group which has agreed to buy ICI's adhesives division from Akzo for £2.7 billion.

Despite getting access to the books, there is still some doubt that Akzo will be able to pull off its acquisition due to resistance from its own shareholders.

At least one investor, the TPG-Axon hedge fund, which holds a 3.5 per cent stake in Akzo, has already said that it would not support a bid at the 670p level.

Analysts, however, have said that now Henkel is involved in the deal, it should be more attractive for Akzo's investors since it will return the £2.7 billion to shareholders.

A spokesman for ICI declined to comment.

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