HOWZAT

An ICI takeover represents the latest chapter in an unfolding story of important British companies falling into foreign hands.

Recent foreign purchases include Pilkington, the glassmaker, BAA, the former British Airports Authority, Boots, P&O and Corus, formerly British Steel.

ICI shareholders will also be entitled to the interim dividend already announced of 4.95p and a second interim of 5p.

The deal is one of the few unaffected by the turmoil on world markets because Akzo has the €11 billion (£7.4 billion) proceeds of the sale in March of Organon, its pharmaceuticals offshoot.

Indeed, falling share prices are more likely to commend the cash on offer to ICI shareholders.

But Akzo could face opposition from a minority of shareholders. At least one hedge fund, TPG-Axon, has said that it will vote against the ICI purchase.

Akzo has also agreed to sell ICI’s adhesives and electronic materials business to Henkel for £2.7 billion, a deal that it is hoped will alleviate shareholders’ concerns.

The Dutch are particularly attracted to ICI’s Dulux paints business.

After the deal is concluded, John McAdam, the chief executive and the architect of a huge restructuring programme at ICI, is expected to leave.

Imperial Chemical Industries was created in 1926 from the merger of four concerns and became one of Britain’s leading industrial companies, the discoverer of polythene and the inventor of the word plastics.

In 1988 the company successfully fought off a hostile bid from Hanson in one of the City’s most stirring takeover battles.

But in recent years the company has shrunk both in size and importance, notably with the 1993 sale of Zeneca, the pharmaceuticals business now part of AstraZeneca.

At its height it was known as the bellwether of the Stock Exchange because ICI shares were seen as the most reliable indication of which way the whole market was moving.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive