AkzoNobel, world leading paint maker and owner of Dulux paint, has turned down a third takeover offer worth €26.9bn by its US competitor PPG Industries.
Responding today, Amersterdam based Akzo boss Ton [Ton] Buchner said that his team had conducted an "extensive review" of the bid and didn’t think it offered enough value for the business.
Akzo has made it clear that it thinks it best if it develops on its own.
He commented, "The PPG proposal undervalues AkzoNobel, contains significant risks and uncertainties, makes no substantive commitments to stakeholders and demonstrates a lack of cultural understanding".
With the latest offer PPG increased an earlier approach by 8%. Some investors in the Dutch firm liked the deal, for example stakeholder Elliot Advisors, which called for a vote to sack Akzo chairman Antony Burgmans last month, which was rejected by the company.
The US firm said its third offer was one “last invitation” to Akzo,”to engage with us on creating extraordinary value and benefits for all of AkzoNobel’s stake holders.”
In its latest offer PPG offered commitments on jobs and to pay a ‘break fee’ in case the deal was rejected by Dutch officials. PPG has not ruled out contacting Akzo shareholders directly.
- PPG is expected to comment on Azko's latest ‘no’ shortly.
- AkzoNobel bought ICI, including ownership of Dulux and Hammerite, in 2008.
- A new, hostile bid could be next on the cards.
- The Akzo share price eased to 77.74 euro in morning trading.