The guardians of Alliance Boots' pension scheme struck a funding deal with the group's private equity buyers today, breaking the deadlock that threatened the £11.1bn (€16.46bn) sale of the healthcare giant.

Dulux paint maker ICI was today confirmed as a takeover target of Dutch chemicals firm Akzo Nobel, the owner of rival paints brand Crown.

Alliance Boots' private equity buyers Kohlberg Kravis Roberts are preparing to meet the group's pension fund trustees in a bid to end the row that threatens to derail the £11.1bn (€16.4bn) takeover.

The prospect of an £8bn (€11.7bn) bidding war for the drinks arm of Cadbury Schweppes caused shares in the blue-chip company to surge ahead today.