Netherlands-based coatings company Akzo Nobel has been asked by a U.K. Takeover Panel to make a formal offer for paint giant Imperial Chemical Industries (ICI) or give up its pursuit, according to the Associate Press.
Under the U.K.’s takeover rules, Akzo will be barred from launching another takeover for six months if it does not bid for the company formally by Aug. 9.
ICI, which makes paints under the names Dulux and Glidden, rejected last month a $14.2 billion buyout offer by Akzo Nobel.
“The board of ICI considered this proposal and unanimously rejected it on the grounds that it significantly undervalues ICI,” a statement from the company said.
In May, London-based ICI announced plans to delist from the New York Stock Exchange in a bid to save about $8 million.
ICI sells paint in Europe, the Americas and in the Asia-Pacific region.
Akzo manufacturers paints and coatings under the names Crown, Sikken and Schoenox, with operations in 60 countries.