PPG continues to pursue AkzoNobel, as the Dutch paint makers sought to calm shareholder frustration following PPG's initial bid of 24.4 billion-euro.
Akzo Nobel CEO Ton Buechner repeated on Monday his opposition to a March 20 takeover proposal from U.S. rival PPG Industries , saying he sees no merit in negotiating with PPG.
Buechner and Akzo Chairman Antony Burgmans have been under pressure from major shareholders, many of whom say the company should enter talks on PPG's 24.5 billion euro ($26.1 billion) offer.
"It did not address the key stakeholder issues and other issues like uncertainties and risks that we had already raised in response to their first proposal" on March 9, Buechner said.
He cited antitrust and other concerns, adding that it was not "our duty" to advise PPG on how to make a deal successful when AkzoNobel is not the one asking for it.
AkzoNobel said it plans to raise its financial targets and release its strategy for its chemicals division (which accounts for approximately a third of company sales and profits) next month.
AkzoNobel will unveil these plans on April 19, also bringing forward the release of its first quarter earnings to the same date. The decision will give investors until the company's annual meeting on April 25 to consider the company's proposal to remain independent.
PPG chief executive Michael Garry met with shareholders in March. Key investor Elliot Advisors, which has a 3.25% stake in AkzoNobel, stated other shareholders were pushing for the company to enter into talks with PPG.
According to AkzoNobel spokesperson Andrew Wood, the decision not to engage in conversation with PPG has stemmed from consideration for all of the company's “stakeholders”, including employees and customers.
"We have a plan for creating long-term value and we're looking forward to sharing that with investors." he said
The chief executive of U.S. paint maker PPG has met with Dutch government officials to make the case for its proposed 22.7 billion euro ($24.5 billion) takeover of AkzoNobel.
PPG was also due to meet representatives of the VEB, an organization that represents shareholders in the Netherlands, but there was no indication that it would get a hearing from AkzoNobel executives.
PPG Chief Executive Michael McGarry, who arrived in Amsterdam last Thursday, said he wanted to meet Akzo "stakeholders" including local media, shareholders, politicians, employee groups and the company's boards.
Many AkzoNobel shareholders have urged Akzo Chief Executive Ton Buechner to meet PPG's McGarry.
A poll of 50 Akzo Nobel shareholders published by Sanford Bernstein found that 80 percent of them wanted AkzoNobel's management to enter talks with Pittsburgh-based PPG.
Despite the seemingly firm decision to avoid entering conversation with PPG, Michael Wegener, managing partner at Hong Kong-based hedge fund Case Equity Partners told Reuters he thought PPG would respond before the shareholders' meeting.