Latest
Recommended
Published: Tue, May 09, 2017
Business | By Patricia Jimenez

Akzo Nobel rejects revised €26.9bn takeover offer

Akzo Nobel rejects revised €26.9bn takeover offer

On Monday, Akzo Nobel, Dutch paint making company, has rejected a third takeover proposal valued at 26.9 billion Euros ($29.51 billion) from USA rival PPG Industries.

But AkzoNobel's senior management remained unmoved Monday, saying the group "concluded that PPG's proposal is not in the best interests of the company, its shareholders and all other stakeholders".

PPG may decide to proceed with a conditional hostile offer in the hope that relentless drubbing of Akzo for its stubborn refusal to consider what its shareholders want will eventually force the stichting to capitulate.

PPG said last week its latest acquisition proposal was worth 96.75 euros per Akzo share, comprised of 61.50 euros in cash, 0.357 shares of PPG common stock and dividends worth 7.78 euros.

Despite promising to protect jobs in AkzoNobel's specialist chemicals business, PPG have made no statement on whether paint factory jobs in Stowmarket and across Europe could be at risk.

"By contrast, AkzoNobel has outlined a compelling strategy to accelerate growth and value creation which we believe will deliver significant long-term value for our shareholders and all other stakeholders".

Some Akzo shareholders, notably the hedge fund Elliott Management, have clamored for Akzo to enter into discussions with PPG.

Daly back to winning ways
In the morning semifinals at Club de Golf Mexico, Kim beat Mi Jung Hur 5 and 4, and Jutanugarn topped Michelle Wie 4 and 3. The 24-year-old South Korean player is projected to jump from 12th to eighth in the world ranking.

The extensive review and the meeting with PPG confirmed to AkzoNobel that its own strategy is better and does not contain the risks and uncertainties inherent in PPG's proposal.

Most analysts say Akzo's independence plan cannot match a PPG takeover in terms of financial value.

The new strategy unveiled last month includes plans to shed its specialist chemicals division and comes after it was buoyed by stronger-than-expected 2017 first quarter profits.

This is because Akzo is concerned that engaging with PPG in comprehensive deal negotiations would weigh on its prospects of getting PPG to improve on its offer much more, according to the sources.

After refusing to meet with PPG since the USA company's first offer in early March, executives of the two companies finally sat down together on Saturday to discuss the proposal. "We went into the meeting with an open mind", he said.

"Specifically, the AkzoNobel chairs stated up front that they did not have the intent or authority to negotiate", PPG said, adding Monday's decision "reflects a continued lack of proper governance" by the company's board.

Like this: