It seems the one sided bidding war between two of the world's largest paint companies is drawing to a close, with AkzoNobel rejecting the third and final offer from competitor PPG.
PPG has now hinted that it may walk away from the offer completely, after AkzoNobel shot down the bid explaining that PPG had underestimated the company's value, showing a "lack of cultural understanding of the brand".
In a statement from PPG it said AkzoNobel's unwillingness to even discuss the opportunity of a buy out was a key reason for the consideration.
“Without productive engagement, PPG will assess and decide whether or not to pursue an offer for AkzoNobel."
The bid of 26.9bn euro (39.7bn AUD) represents a premium of around 50 per cent over AkzoNobel’s share price back in March. Should PPG not make the June 1 deadline to file bidding papers, the company will be forced to halt further offers for six months.
Regardless of the outcome for PPG, the constant refusals to engage by AkzoNobel have put its chairman Antony Burgmans at risk of losing his job, with US activist investor Elliott Management seeking his dismissal.
The investor group has asked a Dutch court to force the company to hold a special shareholder meeting where they will look to oust the chairman to further pressure Akzo Nobel into talks.
Corporate governance experts have comment, stating the chances of a successful PPG takeover now are slim.