THE chairman of ICI, Peter Ellwood, will come under pressure this week to open the company’s books to Akzo Nobel after the Dutch chemicals group improved its terms for taking over the company.

Akzo has long coveted ICI, one of the most famous names in British industry, and broke cover last month with an offer of 600p a share, valuing the British group at £7.2 billion. ICI rejected the approach.

Late last week Akzo returned to the fray. It is understood to have submitted an indicative offer close to 650p a share. Neither company would comment, but Akzo is likely to confirm the approach early this week.

Analysts were divided on whether the level of the offer would be sufficient to win the day. “Shareholders have made a lot of noise about 700p, but if it is 650p the board will have to think long and hard. There will be a lot of pressure on Ellwood to engage with Akzo,” said one.

Bankers say the credit squeeze of recent weeks has made it almost unthinkable that a rival private-equity bid will emerge. ICI’s share price has also slipped back – it closed on Friday at 577p, down 6.3% on the week.

After the rejection of Akzo’s first approach, the Takeover Panel gave it a deadline of August 9 to submit a revised offer.

ICI, led by Ellwood and chief executive John McAdam, reports its second-quarter figures on Thursday. Analysts expect pretax profits of £130m.

The UK chemicals group has enjoyed a renaissance in recent years, and since the first approach from Akzo has stressed that it plans to remain independent.

Investors expect a response to the improved offer on Thursday.

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