Another AkzoNobel shareholder has put pressure on the paints maker over its handling of the PPG takeover approach.
The Dutch maker of Dulux rejected a third takeover offer, valued at €26.9bn (£22.7bn), from US rival PPG this week.
Following a meeting between Akzo boss Ton Buchner and PPG chief executive and chairman Michael McGarry, the Dutch firm issued the following statement:
AkzoNobel has concluded its own strategy, presented on April 19, 2017, offers a superior route to growth and long-term value creation and is in the best interests of shareholders and all other stakeholders. This decision follows considerable in-depth analysis of PPG’s proposal by the supervisory board and management board of AkzoNobel, working closely with their financial and legal advisors.
Investors want more, however. Intrinsic Value Investors, which has owned a small number of shares in Akzo since 2006, has written to Akzo asking it to make the “in-depth analysis” public.
The investor said that if this was not published, it would support PPG in its attempts to buy Akzo.
“If AkzoNobel is confident about its analysis and conclusions, this should not be an issue,” Intrinsic said.
“This transparency will enable all shareholders and other stakeholders to form their own conclusions regarding the two competing proposals. We would like to see this analysis being published as soon as possible whether PPG makes a formal offer or not.”
Activist hedge fund Elliott Advisors has been leading a shareholder campaign urging Akzo to engage in talks with PPG since March, when the US firm had two bids rejected.
An Akzo spokesman said:
We provided a very detailed analysis in our 8 May announcement, which tested the proposal in four key areas.
We concluded that the interests of shareholders and other stakeholders are best-served by our own strategy to accelerate growth and value creation, as we announced on 19 April.