Mid session rally runs into sand2007-08-06 16:55:28

ICI added 3 to 634.50 - the specialty chemicals outfit finally opening its books to Dutch rival, Akzo Nobel, after the latter raised its indicative bid to £8.0 billion.

Akzo, which has teamed up with German consumer goods firm Henkel, says it's now offering 670p a share in cash. Or 20p a share more than its offer rejected by ICI last week.

For Akzo the deal makes sense as it would increase its position in the world's £42 billion a year coatings industry. And give it a market share of about 15%.

Tesco gained 6.50 to 412.75 - the food retailing giant confirming it has exercised a call option to buy 16.4% of Scottish garden centre dealer, Dobbies Garden Centres.

The option now gives Tesco 28.1% of Dobbies, although it doesn't necessarily put it in a stronger position in terms getting shareholder approval to gain control. On July 19th Tesco confirmed it had won the support of 32.2% of shareholders.

Complicating matters however has been Scottish businessman Tom Hunter who increased his stake in Dobbies to 25.57% back in June in a move aimed at outmaneuvering Tesco.

Hunter has yet to submit a counter offer though.

Barclays added 4 to 683 - the bank formally launching its 65 billion euros £44 billion bid for ABN AMRO as it tries to thwart a 71 billion euros offer from a Royal Bank of Scotland-led consortium.

Barclays confirmed that ABN shareholders will receive 13.15 euros in cash and 2.13 new Barclays shares for each ABN share tendered. The offer period is due to run through October 4th.

SkyePharma slumped 3.75 to 17.75 - the drugs outfit reporting that the US FDA has unexpectedly queried an aspect of the firm's clinical trial programme for its Flutiform asthma treatment.

Having considered this issue carefully the firm says it has concluded that in order to provide further information to satisfy the FDA, it may be necessary to generate additional clinical data to supplement the ongoing Phase III programme.

The bottom line is that undertaking this work could result in the filing of Flutiform being delayed until H2 2008. Moreover, the extra work could mean additional costs of between £3 million and £5 million.

DMGTfirmed 7.50 to 716.50 - Morgan Stanley raising its recommendation on the newspaper publisher from 'equal weight' to 'overweight' - the investment bank describing the stock as offering 'excellent value'.

F&C Asset Management

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2007-08-06 16:55:28 © Moneyextra.com