Akzo Nobel was a step closer to clinching the takeover of ICI today after the UK chemicals group agreed to open its books following a raised £8.1 billion indicative offer from the Dutch predator.

A statement from ICI revealed that Akzo was willing to pay 670p per share, plus up to an additional 9.95p in shareholder dividends. The dividends would be paid in two stages over the coming months.

ICI said that it would now allow the Dutch firm to undertake “certain limited due dilgence” to enable it to table a formal bid, as predicted by The Times today.

Akzo has until Thursday to make a formal offer under a Takeover Panel deadline, although ICI is understood to be willing to ask the Panel for an extension if the Dutch group needs more time to put its bid together.

Andrew Benson, Citigroup analyst, said that he expected a formal offer at "roughly" 670p could be made this week.

ICI said: “The proposal is subject to a number of pre-conditions, including completion of due diligence. The board of ICI has agreed that Akzo can undertake certain limited due diligence, which ICI expects to be completed within a few days.”

Shares in the group rose 10p to 641.5p despite speculation that Akzo may have trouble securing shareholder support for the higher offer.

The TPG-Axon hedge fund, which holds a 3.5 per cent stake in Akzo, has already warned that it will not support a bid at the higher level.

Dow Chemicals, the US group, is also believed to be mulling a last-minute move for either ICI or Akzo.

The Dutch company has been circling ICI for weeks and initially tabled a 600p proposal in June. It had a second 650p approach rejected last week.

At the time, Alan Brown, ICI’s chief financial officer, insisted the “door remained open” for more talks.

The latest offer from Akzo, which is being advised by Morgan Stanley, follows an agreement to sell on ICI’s adhesives and electronic materials businesses to Henkel, the German chemicals company, for £2.7 billion. Akzo is more interested in ICI’s paints division and its business in the Far East.

Henkel today said that it expected to wring more than €240 million (£160 million) of cost savings out of the business following any deal.

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