SPECULATION is intensifying that ICI's Runcorn site is about to go under the hammer in a £250 million auction.

Unconfirmed reports have claimed that the race to buy the chlorine manufacturing business is set to be fought between two venture capital companies.

Advent International, which owns the HMV music empire, is believed to be battling a consortium involving CVC capital partners.

But Huntsman Chemicals, a US-based rival of ICI, is also thought to be formulating a bid.

This news comes in the wake of a slump in ICI's share price following a profit warning on Thursday.

The company blamed the high sterling exchange rate, which makes British exports relatively expensive, and the economic crisis in East Asia, for an expected dive in profits. ICI's share price slumped to 780p, down 131p, as profit projections were revised downwards by £100 million.

Speaking from the company's London headquarters, spokesman John Edgar said he did not think that jobs in Runcorn would necessarily be affected by the profit revision.

An ICI spokeswoman at Runcorn said of the latest speculation: "We can't comment on market rumour."

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