AMSTERDAM: Shareholders piled pressure on Dutch paint maker Akzo Nobel to open talks with U.S. rival PPG Industries after Akzo rejected a revised 22.7 billion euro takeover offer as too low, too risky and a bad fit culturally.
With Akzo insisting that the interests of staff and investors were best served by its plan to spin off its chemicals division and remain independent, the Dutch Shareholders’ Association (VEB) said PPG should be given a hearing.
“The second offer addressed many of Akzo’s concerns about research and development, jobs and the firms’ cultures, so they should at least discuss it,” said Paul Koster, VEB’s director, echoing the views of several of Akzo’s biggest shareholders.
PPG said its offer was worth 90 euros a share — the level at which one investor said a sale would become attractive.
“At this price we would believe it is up to management to convince us not to sell,” one top-20 shareholder said.
Pittsburgh-based PPG’s pursuit of Akzo has raised hackles at the paints and coatings maker, which, like many Dutch companies, is ringed with defenses designed to make hostile takeovers difficult.
“This is not solely about price,” CEO Ton Buechner said in an interview, saying that the leverage the combined companies would carry after a merger and “execution risks” also played a role in rejecting the offer.
“This unsolicited proposal simply doesn’t warrant Akzo Nobel engagement with PPG.”
In a statement rejecting the proposal, Akzo also cited “a significant culture gap between both companies.”
Dutch politicians have come out against a takeover of Akzo, including Economic Affairs Minister Henk Kamp, who said it would not in the Netherlands’ national interest.
