Mumbai: British chemicals giant Imperial Chemical Industries Plc has rejected a $14.2 billion offer from Akzo Nobel NV of the Netherlands as too low.

Akzo, the world''s largest manufacturer of paints and coatings, offered 600 pence a share, a price that "significantly undervalues" the business, London-based ICI said in a statement.

Akzo''s primers and topcoats are found on Airbus SAS''s A380 airliner and the London Eye observation wheel.

Buying ICI, the maker of Dulux and Glidden paints, would add the second-biggest paint maker in the US and China and boost Akzo''s bargaining power with raw-material suppliers.

Arnhem-based Akzo said ICI is ``highly attractive'''' and said it''s continuing to evaluate the company.

ICICI shares hit an eight-year high of 644 pence on speculation Akzo will increase its offer. The shares were up 17 per cent or 95 pence at 640 pence as of 1:14 p.m. local time. The rise boosted ICI''s market value by 1 billion pounds to 7.59 billion pounds.

Shares of Akzo had fallen 1.3 per cent to 60.80 euros, giving a value of 17.4 billion euros ($23 billion).

Akzo makes Crown and Sikkens paints as well as finishes for automobiles and chemicals for paper. The company reported a 20 per cent jump in profit last year.

The agreed sale of Akzo''s drugs unit Organon for $14.4 billion will give it enough cash to comfortably purchase any rival, according to analysts.

The offer, 9.3 per cent more than ICI''s last week''s closing price and equal to 1.5 times sales.

That compares with the 2.2 ratio paid by Schering-Plough Corp. for Akzo''s Organon, and the 1.7 ratio agreed by Saudi Basic Industries Corp for General Electric Co.''s plastics unit.