Elliott in fresh attempt to oust Akzo chairman

ACTIVIST investor Elliott Advisors has filed a second lawsuit as it makes a renewed push to oust the chairman of Dutch paint group Akzo Nobel, maker of Dulux.

Elliott said yesterday that it had applied for authorisation from the Dutch interim relief court to hold an extraordinary general meeting in order to vote out Antony Burgmans, two months after a previous attempt failed.

Mr Burgmans was viewed by Elliott as an obstacle to a €27bn (£24bn) takeover approach made by rival PPG Industries, which Akzo rejected three times despite calls from shareholders to engage with its US suitor.

Elliott has already tried taking the matter to court after trying to force Akzo to hold a meeting to vote on Mr Burgmans’ dismissal in May.

Last month PPG conceded defeat on the takeover bid, which would have created an industry leader in the $130bn (£100bn) paints market. Under Dutch takeover rules, the US company will not be allowed to make a new approach for at least six months.

Now Elliott, which is Akzo’s largest shareholder with a 9.5pc stake, has sought permission from a different Netherlands court.

The activist investor said that now PPG’S bid was off the table it was merely attempting to censure the company’s management for poor performance, rather than seeking to change its strategic direction – something that had caused its previous case to fail.

“Elliott finds chairman Burgmans’ views on shareholder democracy to be archaic and wholly unacceptable in today’s capital markets,” Elliott Advisors said yesterday.

“A board that holds itself accountable to no one is not an appropriate governance paradigm. If shareholders are not able to regulate the conduct of Akzo Nobel’s boards, who can?”

Diana Abrahams, Akzo Nobel’s director of public and media relations, said the company has been in close contact with its shareholders since the ruling in May.

“We have had more than 130 contacts with shareholders in June, seeking feedback,” she said.

The company is expected to set out plans to repair relations with its shareholders at its next results, which are due on July 25.