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British chemicals giant ICI has announced that it has received a higher indicative takeover bid from Dutch rival Akzo Nobel.

Confirmation of the 670p-per-share proposed bid follows speculation that ICI had agreed to open its books to the company after receiving an offer above the 650p-per-share one it rejected from Akzo last month.

In a statement today the Dulux manufacturer confirmed the speculation, revealing: "The board of ICI has agreed that Akzo can undertake certain limited due diligence, which ICI expects to be completed within a few days."

ICI said that a further announcement would be made "in due course" about Akzo's latest proposed bid, which values the chemicals company at £8 billion.

The firm rejected a previous £7.8 billion offer from Akzo on July 30th, on the grounds that it "failed to recognise the full strategic value of ICI".

However reports suggest that some Akzo shareholders are opposed to offering too much in order to assume control of ICI, which has become a takeover target after slimming down its business to focus on the provision of high-margin paints and adhesives.

Fund manager TPG Axon, which owns a 3.5 per cent stake in Akzo, wrote to the company last week stating its opposition to the ICI deal, the Sunday Times reported yesterday.

One investor told the paper: "We do not want Akzo to overpay for this deal. Currently it is far too highly valued and there's no way investors will allow it to happen."

Other reports have suggested that other companies, including US firms Dow Chemicals or DuPont, Germany's BASF or India's Reliance Industries, may come forward with a rival bid for ICI.