AkzoNobel rejects third take-over bid by U.S. rival PPG

Dutch paints, coating and chemicals giant AkzoNobel rejected a third take-over bid by United States rival PPG Industries, both companies announced on Monday.

On April 24 AkzoNobel received a third bid by PPG of 26.9 billion euros (29.4 billion U.S dollars), after it had already rejected bids of 20.9 billion euros and 22.4 billion euros by PPG in March this year. The decision follows an in-depth analysis of the proposal and a meeting between the directors of both companies last Saturday.

According to a statement by AkzoNobel the offer "undervalues AkzoNobel, fails to provide appropriate value to AkzoNobel shareholders and does not reflect AkzoNobel's current and future value". It refused to negotiate on the offers, to the annoyance of some shareholders.

"The PPG proposal undervalues AkzoNobel, contains significant risks and uncertainties, makes no substantive commitments to stakeholders and demonstrates a lack of cultural understanding," Ton Buchner, CEO of AkzoNobel, added.

The Dutch company announced to continue with its plan presented on April 19 to split into two businesses, with the Specialty Chemicals part being separated from the Paints and Coatings company. "AkzoNobel has concluded its own strategy offers a superior route to growth and long-term value creation and is in the best interests of shareholders and all other stakeholders," the company said in a press release.

PPG was disappointed with the third rejection by AkzoNobel. "AkzoNobel has once again refused to enter into a negotiation regarding a combination of the two companies, ignoring the best interests of its stakeholders, including long-term shareholders who overwhelmingly support engagement," PPG said in a press release. Endit