ICI said yesterday it was selling a bundle of businesses to US group Huntsman in a $2.8 billion (€2.6 billion) deal as it seeks to refashion itself into a speciality chemicals and coatings outfit. The deal to sell polyurethanes, titanium dioxide and some petrochemicals businesses to Huntsman is part of ICI's move to get out of the bulk chemicals business.

ICI said the deal would result in initial net proceeds of £1.3 billion sterling (€1.95 billion), which it plans to use to cut group debt of some £4.2 billion. ICI shares closed up 23 1/2p or 3.7 per cent at £6.59. ICI finance director Mr Alan Spall said the deal put ICI on track to meet a July 2000 deadline for its transition programme to a speciality chemicals and coatings company and out of bulk chemicals.