• 2020 research document
    2020 research document
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It's been another dramatic week in the PPG campaign to take over AkzoNobel. PPG sweetened its offer by six percent to 26.9billion Euros ($39billion) on 24 Apil and indicated that if this offer wasn't discussed it would move forward with a hostile takeover bid.

In a letter, PPG Chairman and Chief Executive Officer Michael McGarry said, 'We are extending this one last invitation to you and the AkzoNobel boards to reconsider your stance and to engage with us on creating extraordinary value and benefits for all of AkzoNobel’s stakeholders.'

Following the recent AkzoNobel AGM, activist hedge fund Elliot Advisors, who has been in favour of talks with PPG since the first offer, called for an extraordinary general meeting to oust AkzoNobel chairman of the supervisory board Antony Burgmans which AkzoNobel refused to grant.

Byron Grote, Deputy Chairman of the Supervisory Board said: “Following a thorough review and careful considering of this request the Supervisory Board reiterates its unanimous support for Mr. Burgmans in his role as Chairman. His unique experience in international business and global transactions is crucial to the Company. He has played an important role in overseeing and supporting management in the transformation of the Company in recent years, contributing to its significantly improved performance.  It is essential that the steady and experienced hand of the Supervisory Board and its Chairman remains focused on the task of steering the company at this crucial time.”

AkzoNobel stated that it will sell its chemicals business, which accounts for a third of the company's sales, as part of a plan to appease stakeholders. AkzoNobel chief executive Ton Büchner indicated that some of the proceeds from the sale could be used to fund further acquisitions by the company.

However, Büchner followed this up by stating the “vast majority” would be returned directly to investors.

Elliot Advisors, which holds a 3.25 percent stake in the Dutch-based paint maker,  said the company's plan seemed “incomplete”.

PPG responded to the AGM AkzoNobel business plan by saying that the PPG offer would provide an “immediate cash payout far in excess of AkzoNobel's special dividend".

Meanwhile on 25 April Dutch Economic Affairs Minister Henk Kamp repeated his opposition to a takeover of paint maker Akzo Nobel, saying he did not care that U.S. rival PPG Industries had raised its offer.

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