Court denies PPG request for more time to bid for Akzo

A financial court in The Netherlands has denied PPG’s request for more time to submit a formal bid for Amsterdam-based paints company AkzoNobel, meaning the Pittsburgh company has to decide by Thursday whether to launch a hostile takeover attempt or walk away from a proposed deal that would create the largest coatings business in the world.

PPG said it was notified Tuesday that the Dutch Authority for the Financial Markets would not extend the June 1 deadline by which PPG has to file a draft for a public offer for all of Akzo’s shares. PPG had asked the Dutch agency to move the deadline to June 14 or 15.

The Downtown-based company said in a statement that it “will continue to assess all of its options.”

PPG’s board met on Tuesday but no details were provided about the meeting.

Since March, PPG has made three unsolicited offers for the Dutch paints maker, all of which were rejected. Its latest bid was valued at about $29 billion.

If the Pittsburgh company decides to drop its bid now, PPG cannot make another offer for six months, under Dutch rules.

On Monday, a separate Dutch court rejected a request by some Akzo shareholders that the company hold a special meeting to remove Akzo’s chairman. The shareholders, led by activist fund Elliott Advisors, have pushed for a management shakeup because the company has declined to negotiate with PPG.

In rebuffing the bids, Akzo has said it will raise value for its shareholders by spinning off its chemicals division and paying out extra dividends.

PPG’s shares slipped 76 cents to $106.48.

Akzo’s shares fell 1.40 euros to close at 74.93 euros.