大象传媒

Another struggle for ICI

• Robert Peston
• 18 Jun 07, 02:14 PM

In 1991, Margaret Thatcher鈥檚 favourite conglomerate, , bought a 2.8% stake in and hinted it might like to buy the whole thing.

The reaction of the media and fustier elements of the City was one of outrage. It was as though the Tower of London was about to be sacked and the crown jewels sold off to Ratners.

ICI was viewed as a national treasure, a nurturer of scientists, a school of management. The British establishment viewed it as little short of scandalous that a bunch of takeover artists at Hanson 鈥� whose primary concern was the Hanson share price 鈥� should suggest that ICI could put a bit more emphasis on rewarding its shareholders.

In some ways it was the totemic struggle of age. ICI fought vigorously to undermine Hanson鈥檚 reputation and credibility.

But although it saw off that particular aggressor, it lost the battle 鈥� because ICI鈥檚 executives were forced to recognise, in a way that they never really had before, that their primary responsibility was to the company鈥檚 owners, the shareholders.

In other words, ICI became just another British company. And it became the amazing shrinking business, because that鈥檚 what it thought shareholders wanted.

It de-merged its pharmaceuticals side, Zeneca, and pulled out of commodity chemicals. New owners became wealthy from the bits of ICI it didn鈥檛 want.

What鈥檚 left at ICI is a business that sells far more in Asia and the US than in the UK, that employs 26,000 people 鈥� fewer than when it was created by a four-way merger in 1926 鈥� and that still has a great name.

But such is the spirit of the times, today the British establishment will not get out of bed to preserve ICI鈥檚 independence.

This morning ICI that it had received an 鈥渋ndicative鈥� takeover offer of 600p a share from its Dutch rival, 鈥� which it rejected on the grounds that its board believes the business is worth a great deal more.

However, to use that ghastly City expression, ICI is now 鈥渋n play鈥�. It is now prey, or quarry, a tempting asset for Akzo, or another chemicals giant, or private equity, or even a Middle Eastern plutocrat.

Barring a stock market meltdown, ICI will be swallowed whole and soon.

Does that matter? A bit. Over time, the consequence will probably be a reduction in the number of jobs available in the UK for chemists and technologists and ambitious managers.

So if your child is studying chemistry at school or university, he or she may well be forced to join the great march of British scientists into investment banks, hedge funds and private equity.

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