Wednesday 18 September 2019

As deadline looms, PPG denied extra time for AkzoNobel bid

Sikkens paint cans at AkzoNobel Sassenheim production facility. Photo: AkzoNobel

Amsterdam stock exchange watchdog AFM on Tuesday evening denied a request by US paints group PPG Industries to extend a 1 June deadline for making a firm bid for its Dutch rival AkzoNobel.

The Dutch regulator did not comment on reasons for rejecting the request, Reuters news agency reported on Wednesday.

PPG must now decide whether to immediately file a formal offer to Dutch regulators by Thursday or walk away for at least six months.

PPG targeted AkzoNobel in early March and the beleaguered Dutch company has already rejected three shares and cash offers made by the Pittsburgh-based group. The last bid was for €26.9bn.

PPG’s board met on Tuesday to discuss its options, according to sources, who asked not to be identified because the deliberations are confidential, Reuters said.

‘PPG will continue to assess all of its options including whether or not to file a preliminarily draft offer memorandum with the AFM by no later than 1 June,’ the company said in a statement after Reuters reported on AFM’s decision.

Akzo Nobel declined to comment.

Amsterdam company court on Monday rejected a request by Akzo investors, led by activist hedge fund Elliott Advisors, for an extraordinary general meeting to remove Akzo Chairman Antony Burgmans over his reluctance to engage in talks with PPG.

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