Dulux fights back after £19bn bid by US predator

DULUX maker Akzo Nobel has sought to quell shareholder unrest over its refusal to enter takeover talks with an American predator.

The Dutch Polyfilla producer, which employs more than 3,300 staff in the UK, is planning to hold an investor summit next month to put stakeholder concerns to bed.

Akzo Nobel, which bought the paints and coatings division of ICI, the former UK industrial chemicals firm, for £8bn in 2008, has staff spread across the North East, Glasgow, Suffolk, the Midlands and at its Slough headquarters.

The £19.4bn approach from American rival PPG has sparked fresh fears for the British Akzo workers who risk losing their jobs should the takeover go ahead.

But Ton Buchner, chief executive of Akzo, has so far resisted calls to engage with PPG, despite shareholders threatening to have him removed.

Instead, the 51- year- old yesterday insisted the firm was ‘ best placed to deliver’ a bright future.

He said: ‘We have, during recent years, achieved record performance levels for Akzo Nobel in terms of profitability and a range of operational measures, generating value for shareholders.

‘We are delivering on our commitments. Akzo Nobel is now a leaner, more agile company with a solid financial and operational foundation and a focus on accelerating growth.’

He added: ‘We are convinced we have a strong platform to build further on our leadership positions to deliver improved profitability and additional long-term value creation for shareholders, employees, customers, the communities where we operate and other stakeholders.

‘We are best placed to deliver these plans ourselves, building on the existing momentum we have within the company.’

Buchner has faced a backlash from shareholders after rejecting two bids from PPG.

PPG, which first made a £18.1bn bid for the company earlier this month, increased its offer to £19.4bn last week – only for it to be rejected.

The move prompted criticism from Akzo shareholders who called on the firm to consider future deals.

Causeway Capital, Akzo Nobel’s largest shareholder, said that while it agreed the PPG offer was too low, it had reached a level where management needed to engage with the firm to adequately address the interests of all stakeholders.

While Elliott, which has a 3pc stake in Akzo, said it was ‘disappointed’ that Buchner, had failed to meet with PPG – even going so far as to suggest he had failed to meet his duties to shareholders in doing so. An Elliott spokes- man said last week: ‘It is only through engagement that Akzo Nobel can determine if PPG is prepared to bid at a level that provides adequate consideration to shareholders.’

Columbia Threadneedle and Dutch shareholder VEB also called for discussions.

Paul Koster, director of VEB, said last week: ‘ They can’t just shut the door.

He added: ‘I can understand them saying it is too low.

‘But when a second bid comes in from a serious player, then you should talk to each other.’