dglobalnews.com PPG Again Raises Bid For Akzo Nobel
Published: Tue, April 25, 2017
Markets | By Armando Jensen

PPG Again Raises Bid For Akzo Nobel

PPG Again Raises Bid For Akzo Nobel

United States paint maker PPG Industries raised its proposed offer for Akzo Nobel by about 8 percent to 26.9 billion euros ($28.8 billion) on Monday, increasing the pressure on its Dutch rival to enter into talks.

Last week, Akzo presented its case for remaining independent, offering shareholders €41.6bn in extra dividends and detailing plans to sell or float its chemicals arm, representing a third of company sales and profits, within one year.

In its third offer since March, PPG's chairman and chief executive Michael McGarry said he was making "one last invitation" to AkzoNobel to "engage with us on creating extraordinary value and benefits for all of AkzoNobel's stakeholders".

Akzo will "carefully review and consider" the proposal, the Amsterdam-based company said in a statement Monday. Akzo shares jumped 6 percent to a record high of 82.86 euros by 1130 GMT.

In March, AkzoNobel rejected a second bid from PPG, saying it substantially undervalued the group and neglected to address the significant uncertainties and risks for shareholders and other stakeholders.

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Elliott Advisors, a top-five Akzo investor that has been pressuring the firm to engage in talks with PPG, said the offer "clearly warrants honest engagement". It has until June 1 to launch a public takeover offer for Akzo.

In the comprehensive proposal letter, PPG said its increased price is comprised of cash of 61.50 euros and 0.357 shares of PPG common stock. The latest proposal, announced Monday, is for 96.75 euros, representing a 50% premium to Akzo's undisturbed share price.

Akzo, which has been under pressure from some shareholders to enter discussions with PPG, last week unveiled its own plan to raise its value, which included spinning off its chemicals business and paying more dividends.

PPG says, though, that its latest offer is "vastly superior" to AkzoNobel's new stand-alone plan.

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