Defender of Dulux falls after war with hedge fund

THE boss of Dulux has stepped down due to health reasons just weeks after fighting off a takeover bid from American rivals.

Ton Buchner, 52, chief executive of parent company Akzo Nobel, said he had taken the ‘ extraordinarily difficult decision’ to resign in order to focus on his health.

It comes after he fended off a £22.5bn takeover from Pittsburgh paint maker PPG – incurring the wrath of vulture hedge fund Elliott Advisors which had pushed for the firm to engage in talks.

Akzo chairman Antony Burgmans said that Buchner ‘felt that if he continued to subject himself to the pressures of his office, that would endanger his health’.

Buchner ( picturedbelow), will be replaced by Thierry vanlancker, who previously headed up the company’s chemicals division.

He will be tasked with implementing Akzo’s radical value creation strategy which involves separating its chemicals business from its paints and coatings arm, increasing its financial guidance for the year and dishing out £1.3bn of dividends.

Buchner joined Akzo in 2012, but in September that year, six months after taking up the chief executive post, he stepped down, claiming he was suffering from ‘over-tiredness’, before resuming work a few months later.

He is widely credited with making the firm leaner and more profitable. He steered it through the threemonth battle with PPG that saw it rebuff offers of £ 18.1bn, £ 19.3bn and £ 22.5bn – securing the future of 3,300 British workers spread across the North East, Glasgow, Suffolk and the Midlands. The move sparked a shareholder uprising as investors, led by billionaire Paul Singer’s vulture hedge fund Elliott Advisors, called on Akzo to engage in talks. The fund also revealed it had upped its stake in the paint maker from 3pc to 9.5pc, making it the largest shareholder.

Akzo was due to hold a meeting with Elliott on July 12 but cancelled the day before, citing the firm’s ‘aggressive stance’.

Burgmans said last night: ‘Buchner has been an outstanding leader for Akzo Nobel, transforming the company and setting it up for future success.

‘His passion and personal commitment has helped create a strong culture across the company. He will be greatly missed.’