ICI’s board has won a groundswell of support from its biggest shareholders for its rejection of a £7.2bn takeover proposal from Dutch conglomerate Akzo Nobel.

Shareholders have indicated any bid for ICI should exceed 700p, well above the 600p approach from Akzo Nobel. Shares in the maker of Dulux paint jumped 15.5 per cent on Monday to 634½p.

David Cumming, head of UK equities at Standard Life Investments, said any offer should be “well in excess” of 700p given the synergies involved in the deal. Standard Life is one of ICI’s top five shareholders with a holding of 6 per cent.

Another leading shareholder said: “700p is definitely reachable. The market trusts the ICI management.” Other shareholders to back ICI’s board in rejecting Akzo Nobel include Threadneedle Investments and Scottish Widows Investment Partnership.

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Peter Marsh on the attraction of ICI to Akzo and others

The offer of 600p a share is equal to a multiple of about 11.5 times ICI’s forecast earnings before interest, tax, depreciation and amortisation for 2007. At 700p this multiple rises to 12.5 times. In spite of ICI’s rejection, Akzo left the door open on Monday, saying it would “continue to evaluate all strategic opportunities” describing the UK company as “a highly attractive addition”.

But the company said it would not overpay. Analysts said Akzo was likely to return with a higher offer but may face competition from rivals including BASF, Dow Chemical and DuPont. However, Mark van der Geest, analyst at Rabo Securities, warned: “This is a complex deal with high execution risks. Pay above 600p and this is no longer a good deal.”

UBS and Merrill Lynch are advising ICI, while Morgan Stanley is advising Akzo.

Additional reporting by Sarah Spikes