Akzo to consider PPG’s new bid
$28.8B offer follows two earlier rejections
PPG on Monday upped its bid for Dutch coatings maker AkzoNobel, saying its new offer of $28.8 billion is “one last invitation” for the companies to negotiate a merger that would create the largest paint company in the world.
Amsterdam-based Akzo — which has rebuffed two prior unsolicited offers from PPG saying they undervalued the Dutch company — said it would consider the sweetened cash-and-stock bid valued at 96.75 euros per share including a dividend to be paid by Akzo. The offer is nearly 8 percent higher than PPG’s previous bid.
If Akzo declines to negotiate a deal, PPG has said it could launch a hostile takeover by June 1.
Akzo, which has been under fire from some shareholders to at least enter discussions with PPG, will hold its annual meeting Tuesday in Amsterdam. Bloomberg reported the venue was changed to accommodate more stockholders.
Among those pressuring Akzo is activist hedge fund Elliott Management, which has also asked for a special meeting to oust Akzo’s chairman, Antony Burgmans.
“Friendly discussions now are in the best interest of all stakeholders,” Elliott said in a statement Monday.
Akzo’s shares shot up nearly 5 percent on news of the revised bid to close at 81.93 euros, its biggest gain since March 9 when PPG’s first offer was disclosed.
PPG’s shares rose to $108.01, up $2.07.