PPG Makes Third Offer for AkzoNobel
PITTSBURGH/AMSTERDAM – On April 24, PPG, the world’s largest paint manufacturer, made a third offer in its bid to buy AkzoNobel, the second-largest paint manufacturer in the world. The revised proposal increased the price PPG would pay for AkzoNobel and also committed to a reverse break-up fee to demonstrate confidence that the company will receive required antitrust approvals. The new offer also added details and commitments that, according to PPG, would “ensure the combined business serves the best interest of all AkzoNobel stakeholders.” AkzoNobel has already declined two previous offers by PPG, stating that they undervalued the company.
On April 12, AkzoNobel confirmed receipt of a request from certain shareholders, led by Elliott Advisors, to hold an Extraordinary General Meeting with the sole agenda item of dismissing Antony Burgmans as Chairman of the Supervisory Board. AkzoNobel stated that, “the Supervisory Board subsequently conducted a thorough review in response to this request.” The company stated that the Supervisory Board concluded the request from Elliott Advisors to dismiss Burgmans did not meet the standards under Dutch law and that the request “is irresponsible, disproportionate, damaging and not in the best interests of the Company.”
In response to the latest proposal by PPG, AkzoNobel confirmed receipt of the offer and stated in a press release on April 24, “In accordance with its fiduciary duties and acting under the Dutch governance code the Board of Management and Supervisory Board of AkzoNobel will carefully review and consider this proposal.”