Amsterdam/London, June 20 - Dutch chemical group Akzo Nobel NV is considering a higher bid for ICI but is prepared to delay a move as the disclosure of its 600 pence per share offer may flush out a rival bid, a source familiar with the matter said on Wednesday.
Sources familiar with the matter had told Reuters on Saturday, before the disclosure of the terms of AKZO's initial approach, that the company would likely make a further takeover approach to Imperial Chemical Industries Plc "soon".
However the Dutch company is now planning to wait to see whether a counterbid emerges -- and at what value -- before deciding on its next move, so that it does not offer more than it needs to, the source said on Wednesday.
Akzo could make an offer in the range of 620 pence to 630 pence but would be reluctant to offer 650 pence, the price some analysts suggest would see ICI's board come under pressure to make a recommendation, unless it needs to, the source added.
On Monday, ICI said it had turned down the 7.2 billion pound ($14.35 billion) takeover approach from Akzo, saying it undervalued the company. Its shares closed at 633-1/2p on Wednesday.
AKZO repeated it could not say for certain if it would make a higher bid. "There is no certainty that we will make a new approach," a spokesman for Akzo said on Wednesday.
"It is difficult to predict what our next step will be -- if there will be one," he added.