* Apollo, PGGM, others still bidding -sources
* Bids due March 23 -sources
* Unit seen valued at around
By Arno Schuetze, Pamela Barbaglia and Joshua Franklin
Other bidders include private equity firm Carlyle Group, Dutch investor Hal Investments, and Advent Internationalpartnered with Bain Capital Private Equity, they said.
The specialty chemicals business is seen being worth around
The business accounts for a third of Akzo's sales andearnings.
Akzo is making changes as it looks to placate investorsafter it rejected a takeover offer from PPG Industrieslast year.
One source said that Hal might act as an anchor investor ifDulux paint maker Akzo decides on a stock market listing for itsspecialty chemicals business instead of an outright sale.
Akzo, Lanxess, Apollo, PGGM, Carlyle, Advent, Bain and HalInvestments declined to comment.
Akzo Nobel has asked for final bids by March 23. At itsannual earnings on March 8 Akzo said it was still on track forthe separation of its speciality chemicals division by nextmonth.
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