AkzoNobel won the shareholder court case against its paints and coatings peer PPG Industries on Monday, but it remains unclear whether it is safe from a hostile takeover bid from the US-based group.

PPG has the option of folding its tents and stealing away or to make an increased and firm bid for the Amsterdam company by 1 June.

AkzoNobel avoided a possible shareholder revolt in Amsterdam company court on Monday evening when the court ruled that its executive and supervisory boards themselves could decide whether to enter talks with PPG, the NRC reported on Tuesday.

Venture capital firm Elliott Capital, a large AkzoNobel shareholder, had gone to court in an effort to remove Antony Burgmans as its supervisory board chairman. Elliott claimed Burgmans was blocking PPG’s €26.9bn bid for the Dutch company. The court rejected this charge.

Deadline

PPG has already asked the bourse watchdog AFM to extend the 1 June deadline for a firm bid. PPG has annual turnover of about €`13.5bn while AkzoNobel turns over €14.2bn a year.

PPG chairman Michael McGarry has already said it will bring out a new bid. But there are obstacles. PPG must be willing to offer about €30bn without seeing AkzoNobel’s books. Moreover, PPG must win over all of AkzoNobel’s shareholders or suffer an enormous loss of face.

AkzoNobel has one more card up its sleeve in the form of a foundation holding priority shares which has the right to name new executive and supervisory boards in an emergency. Finally, PPG will have to convince banks to finance the deal, the NRC said.