Full marks to Hans Wijers.

In teaming up with Germany’s Henkel, the chief executive of Akzo Nobel has neatly solved two of his biggest problems in bidding for ICI.

The back-to-back deal to sell ICI’s adhesives and electronic materials business to Henkel for an estimated £2 billion lessens the acquisition cost for Akzo, and would appear to quell any complaint that he is overpaying.

That transaction also usefully swells Akzo’s already-full coffers – the company has €11 billion (£7.4 billion) cash on its balance sheet from the sale of its Organon drugs business – and enhances its scope to return capital to shareholders. This will assuage those activist investors who would prefer Akzo to buy back its shares rather than pursue a big-ticket acquisition.

The question for ICI investors is whether 650p – the level of Akzo’s improved offer – is the last roll of the dice. In sending ICI’s shares up to just 612½p this morning, a near 6 per cent discount to the offer, the stock market is clearly underwhelmed.

The implication is that arbitrageurs believe the deal will not succeed: either because Akzo is not willing to raise its offer or because it is unwilling to go hostile in the face of ICI’s rejection. The rise in Akzo’s share price this morning sends much the same message.

What Mr Wijers has in his favour, however, is recent stock market turbulence. The more equity markets weaken, the more irresistable that 650p – which puts ICI on an exit multiple similar to those paid for BOC and Engelhard last year – will seem.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax