American vultures offer £3bn more for Dulux

THE US predator trying to buy Dulux’s owner has upped its offer by more than £3bn in a last-ditch attempt to force a takeover.

Pittsburgh-based PPG has offered to buy London-listed Akzo Nobel, the parent company of Dulux, for £22.5bn.

The offer comes as Akzo, which has rebuffed £18.1bn and £19.3bn bids from PPG, faces a group of unhappy shareholders at its annual general meeting today. Shareholders, led by activist New York hedge fund Elliott Advisors, have been vocal in their criticism of the way the two earlier bids were handled and have been calling for the Dutch firm to engage with PPG.

Akzo, which took over British giant ICI and employs more than 3,300 people in the UK, has so far resisted shareholder pressure, saying a takeover would lead to thousands of job losses worldwide.

But PPG yesterday said it would be prepared to secure British jobs, as well as Akzo’s pension commitments, but could do so only if it was prepared to engage. In its revised bid, which it claimed it had ‘no choice’ but to make public given Akzo’s refusal to enter talks, the firm said it would also commit to research and development spending in the UK.

A spokesman for Columbia Threadneedle Investments, a top 20 shareholder in Akzo, said: ‘Akzo Nobel has no more room for excuses now and must enter into proper discussions with PPG.’

Akzo said it will carefully review and consider PPG’s proposal.