AkzoNobel’s under-pressure chief executive has taken to vlogging (that's video blogging, to the uninitiated) to defend his decision not to engage with a US takeover bidder.
Ton Buchner addresses several issues in the YouTube post (below), including explaining why AkzoNobel has refused to meet with PPG Industries, which has made two unsolicited approaches for the Dulux-making Dutch firm in recent weeks.
Activist investor Elliott Advisors has led criticism of AkzoNobel’s refusal to engage with PPG, and has been backed by other shareholders.
Buchner said in the video:
We very clearly assessed two proposals that we’ve received from PPG. We’ve seen that it clearly undervalues the company. And then the second proposal that we received, it did not address the key stakeholder issues, and other issues like uncertainties and risks that we have already raised in our response to first proposal.
That is why we have seen no merit in engaging with PPG. It cannot be our duty to actually advise how an offer should be done.