Paint manufacturer ICI has turned down an increased takeover offer from Dutch firm Akzo Nobel.
A statement from the London-registered firm, which specialises in paints and adhesives, said its board unanimously rejected Akzo's 650 pence-per-share offer after saying it did not fully reflect the company's value.
The offer, which puts ICI's worth close to £7.8 billion, follows a 600 pence-per-share offer turned down last month.
The Dutch firm said it was "evaluating its options" in a statement released this morning.
Analysts say Akzo must now decide whether to up its offer to 700 pence-per-share, which they say the ICI board is holding out for.
While Akzo said ICI remained "a highly attractive addition to its coatings business", it added: "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."
Akzo owns Dulux paints and employs more than 60,000 people, while ICI employs over 26,000.
Shares in ICI rose by over seven per cent on early morning trading in London, while the value of Azko shares slipped by 2.4 per cent on the Paris Stock Exchange.
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