Amsterdam-based paints and coatings group AkzoNobel has rejected the third takeover bid by its US peer PPG Industries, the Financieele Dagblad reported on Monday.
After refusing to meet with PPG since the US company’s first offer in early March, executives of the two companies finally sat down together on Saturday to discuss the proposal.
Later, AkzoNobel said PPG’s €26.9bn offer was too low and ‘failed to reflect the true current and future value of the company’. AkzoNobel argues that its own plan to split off the specialty chemicals unit offers shareholders more value.
PPG CEO Michael McGarry told the FD earlier that should AkzoNobel turn down PPG’s ‘friendly’ offer, the US company would launch a hostile bid.
This means that PPG would approach AkzoNobel shareholders – nearly 50% are American – directly. Large shareholders include Elliott Management (3.25% of the shares) and Causeway Capital Management (6.7%). Both are backing PPG’s bid.
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