Hedge fund calls truce in battle for paint maker

A TRuCE has been called between the owner of Dulux and an activist investor following a long-running battle over the way the paint maker is run.

Akzo Nobel, which has around 3,000 Dulux staff in Britain, has been at war with aggressive hedge fund Elliott for months. But the pair have now called off hostilities – for now.

The row stems from Akzo’s rejection of a £23bn takeover bid from uS rival PPG this year – a move that infuriated Elliott which pushed for the deal.

Elliott, which has a 9.5pc stake in Dutch firm Akzo, went to court to remove Akzo chairman Antony Burgmans, who has since said he will step down.

Now, the two sides have agreed a ‘standstill’ agreement, meaning a suspension of ‘ongoing litigation for at least three months’.

Elliott will back Thierry Vanlancker, who is set to replace Ton Buchner as chief executive, after Buchner resigned for health reasons. And it will back three new supervisory board members and plans to split off its chemicals sector.

Elliott has upped its stake in BHP Billiton to 5pc as it fights to overhaul the mining company.