PPG increases bid for Dulux firm Akzo Nobel
- Author: Ronnie Bowen Apr 25, 2017,
Apr 25, 2017, 12:53
The PPG chairman said shareholders will certainly want to know why AkzoNobel executives have refused to meet with PPG ever since the United States company launched its first bid for the company in early March.
In what has already been a tetchy stand-off between the companies Mike McGarry, the PPG chief executive, said that the offer was "one last invitation" to enter talks.
At 1300 BST, the shares were up 4.5% to €81.72.
'In light of your prior public responses, we have no choice but to make this letter public.
It also vowed to keep the headquarters for the marine and protective coatings business, and the decorative coatings and speciality materials arm, in the United Kingdom and the Netherlands respectively.
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The Polycell manufacturer, which employs 3,000 staff across the United Kingdom, has previously warned that any deal with PPG would trigger "significant job cuts" and create uncertainty for thousands of workers across the globe. AkzoNobel's CEO Ton Büchner had been refusing to talk with PPG's management team about the two previous offers because he said they undervalued the company.
Analysts from Morgan Stanley said it was noteworthy Akzo had not rejected the bid out of hand, and that PPG had made significant concessions - not only on the break fee but also on employment, pension plans, research and development spending and the location of production facilities.
PPG is offering Akzo holders cash and stock valued at 96.75 euros a share including a dividend that Akzo plans to pay, Pittsburgh-based PPG said in a statement Monday.
AkzoNobel reported the investment company to the Dutch Authority for the Financial Markets (AFM) and told Elliott to outline its relationship with PPG Industries.
He said PPG believed the deal would add to its earnings from the first year and given the support from Akzo shareholders, the USA firm would submit a formal offer to the Dutch financial markets regulator by June 1, regardless of what Akzo does.