US-based paints and coatings group PPG Industries added pressure to its increasingly hostile attempt to take over rival AkzoNobel by sending an open letter to Akzo shareholders on Monday.
The letter added fuel to the fire ahead of Akzo’s planned announcement of its new corporate strategy in London on Wednesday. In the two-page document, PPG chairman Michael McGarry once again outlined his belief that combining the two companies would have great benefits for both.
McGarry also revealed that PPG approached Akzo in 2013 and discussed plans to merge the companies, adding Akzo was not interested and did not react at the time.
Nor has Akzo reacted to PPG’s two bids for the Dutch company made since 2 March. PPG’s second, sweetened offer valued Akzo at €22.4bn. Refusing any discussion, Akzo termed PPG’s offer ‘too low and too risky’ and said it substantially undervalues the company.
McGarry said PPG had made 50 acquisitions in the past 15 years and all were now well integrated into the group. PPG has five production facilities in the Netherlands, with a total payroll of 1,000.
Akzo employees and unions have said they feared job losses with a PPG takeover.
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