Shareholders urge Akzo to negotiate with suitor PPG

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In total, it was a €7.00 per share increase from PPG's initial offer.

PPG said its bid valued Akzo's equity at around 22.7 billion euros.

The Dutch firm said PPGI's "proposal fails to recognise value of AkzoNobel and neglects to address significant risks and uncertainties, including extensive anti-trust concerns".

"We are convinced that Akzo Nobel is best placed to unlock the value within our company ourselves", Buechner said in the statement.

The Amsterdam-based company said PPG's revised offer worth EUR88.72 a share, which comes just weeks after its initial EUR83-a-share offer was rebuffed, undervalues the company and doesn't warrant engaging with its USA suitor. In a statement Wednesday, PPG defended its latest offer, arguing it provides Akzo shareholders with "substantial" upfront cash and shares to benefit from any takeover. Akzo Nobel was created from the merger of paint and chemicals companies in Sweden and the Netherlands that dated back more than a century. While correct in recognizing the risks and uncertainties involved in such a large and complex transaction, Akzo Nobel can not duly analyse these risks and uncertainties without engaging with PPG.

In a nod to the political sensitivity of any deal, PPG said its cash and share offer would reflect the interests of "shareholders, employees, customers and the communities" served by Akzo and that regulatory approval could be obtained. We are executing our plan, including the creation of two focused businesses and new cost structure, and believe this gives us a strong platform for continued profitability and long term value creation for all our stakeholders with substantially less execution risks.

A combination of the world's two largest coatings companies would attract intense antitrust scrutiny in Europe and the U.S. They have leading market shares of architectural paint in many European countries, with Akzo making brands such as Dulux and Hammerite and PPG producing Olympic and Pittsburgh brands.

Pittsburgh-based PPG is a leader in the coatings and specialty materials industry, with over $15 billion in sales in 2016.

PPG CEO Michael McGarry is attempting the company's largest ever deal just 18 months into the top job.

The unusual move comes as some analysts have said Akzo's Dutch corporate rules protect it-not make it more vulnerable.

Since then, it has emerged that activist investor Elliott Management Corp. owns a stake in Akzo and is pushing the company to engage with PPG, The Wall Street Journal has reported.