AkzoNobel, the Amsterdam-based paints and coatings group which has been targeted by its US peer PPG Industries since early March, has been urged to open talks by shareholder’s group VEB.

Speaking on current affairs show ‘Buitenhof‘ on Sunday, VEB director Paul Koster said AkzoNobel could not just build a protective wall around itself to ward off a hostile bid. He said the company is legally bound to hold serious discussions with PPG.

Last week, AkzoNobel rejected PPG’s third offer, saying its €26.9bn offer was too low. PPG said it was disappointed and threatened to make a bid directly to AkzoNobel shareholders bypassing the Dutch company’s executive and supervisory boards.

AkzoNobel said a special foundation could be employed to make such a move very difficult.

But Koster warned that such a move by AkzoNobel is not possible. The foundation route can be used only if there have been serious discussions between the two companies.

The 90-minute meeting between the AkzoNobel and PPG on May 6 was insufficient, Koster said. He stressed that AkzoNobel and PPG would have to sit down together to negotiate.