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Further proposal from Akzo Nobel rejected by ICI
Arnhem, the Netherlands, July 30, 2007 - Akzo Nobel NV ("Akzo Nobel") announces that it has made a further approach to the board of Imperial Chemical Industries PLC ("ICI") with an increased offer proposal of 650p per share in cash. However, the proposal has been rejected on the grounds that it did not reflect the full value of ICI.
Akzo Nobel was able to make an increased offer proposal after it had entered into an exclusive arrangement with Henkel KGaA ("Henkel") for the sale, following completion of its proposed offer, of ICI's Adhesives and Electronic Materials businesses.
Akzo Nobel and Henkel have negotiated a back to back agreement relating to this proposed sale which, subject to the approval of Henkel's Shareholders' Committee, they would intend to execute immediately prior to the formal announcement of an offer by Akzo Nobel. The exclusivity agreement with Henkel enables both Akzo Nobel and Henkel to each focus on the businesses that offer them most synergies thereby meeting their respective stated strategic and financial objectives. It would also allow Akzo Nobel to return further cash to its shareholders.
Akzo Nobel continues to believe that ICI would represent a highly attractive addition to its coatings business. Akzo Nobel's increased proposal would provide ICI shareholders with a 40% premium to ICI's share price of 464.25 pence on March 9th, 2007, the last business day prior to Akzo Nobel's announcement in relation to the disposal of Organon BioSciences.
Akzo Nobel is evaluating its options. Whilst discussions continue, Akzo Nobel will remain financially disciplined.
There can be no certainty that any further proposal will be made to the board of ICI or that any offer or transaction will result. A further announcement will be made if appropriate.
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Note to editors
Akzo Nobel is a Fortune Global 500 company and is listed on both the Euronext Amsterdam and NASDAQ stock exchanges. It is also included on the Dow Jones Sustainability Indexes and FTSE4Good Index. Based in the Netherlands, we are a multicultural organization serving customers throughout the world with coatings, chemicals and human and animal healthcare products. We employ around 62,000 people and conduct our activities in these four segments, with operating subsidiaries in more than 80 countries. Consolidated revenues for 2006 totaled EUR 13.7 billion. The financial results for the third quarter will be published on October, 23, 2007.
Internet: www.akzonobel.com
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Akzo Nobel nv
Corporate Media Relations, tel. +31 26 366 43 43
Contact: Tim van der Zanden
