PPG increases offer for Dulux owner Akzo

US paint maker PPG has submitted a third cash and share offer for the Dulux owner Akzo Nobel.

The new bid of €26.9bn (£23bn) was timed perfectly, one day before the Akzo senior team faces unsettled shareholders at its annual general meeting.

To date, Akzo Nobel has refused two offers from PPG, the most recent of €24.6bn. Akzo's shareholders led by hedge fund Elliott Advisors have called on the company to at least begin discussions with PPG.

Akzo employs over 3,000 people in the UK and owns the well known brands Dulux, Cuprinol, Hammerite and Polycell.

In a statement earlier today, PPG CEO, 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." He added: "Our revised proposal represents a second increase in price along with significant and highly-specific commitments that we are confident AkzoNobel's stakeholders will find compelling. I think it's important for them to do the due diligence and to sit down and listen to us. They have run out of excuses to throw on the table to say why they shouldn't."

Akzo Nobel responded with: "The Board of Management and Supervisory Board of AkzoNobel will carefully review and consider this proposal.”

PPG stated that its latest bid represented an increased price of €96.75, including dividend, per Akzo share, comprised of €61.50 in cash and 0.357 shares of PPG common stock.

The US firm’s second bid, worth €90 per share made on 20th March was rejected within 48 hours, with Akzo arguing that it substantially undervalued the company.

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.

Akzo plans to spin off specialist chemicals

Source : Insight DIY Team

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