Elliot Advisors launches legal action to oust Akzo chairman

AMSTERDAM: Elliott Advisors, the hedge fund that has been pushing Dutch paint maker Akzo Nobel to enter takeover talks with United States peer PPG Industries, said yesterday it had launched legal action to try to oust Akzo chairman Antony Burgmans.

In an open letter, the fund said Akzo’s rejection of PPG’s third takeover proposal, worth €26.3 billion (RM124 billion) was “a flagrant breach of Akzo Nobel’s Boards’ fiduciary duties and of Dutch corporate law, and... an arrogant dismissal of recognised principles of proper corporate governance.”

Akzo’s boards prefer their own plan to avoid a PPG takeover by issuing extra dividends and selling or floating Akzo’s chemicals division, representing about a third of profit.

Analysts say Akzo’s plan is not as attractive for shareholders as PPG’s €96.75 per share offer. Akzo shares were trading 0.1 per cent higher at €76.88 yesterday.

Elliott said it had filed a suit with Amsterdam’s Enterprise Chamber petitioning judges to order an extraordinary general meeting of shareholders to debate Burgmans’ dismissal.

. Elliott holds a 3.25 percent stake in Akzo. Reuters