AkzoNobel’s shares dropped two per cent today as investors wait to see whether PPG Industries will make another takeover offer for the Dutch paints company.
On Monday, a Dutch court ruled against investors, led by Elliott Advisors, attempting to force an extraordinary meeting to vote on the dismissal of Akzo chairman Antony Burgmans.
The ruling was a blow for PPG, with Burgmans seen to be standing in the way of a takeover deal. It is thought the US firm could now make a hostile approach for Akzo.
PPG now has until Thursday, 1 June, to make a fourth offer for Dulux maker Akzo.
However, the would-be buyer has requested that this deadline be extended to 14 June at the earliest and is awaiting news from the Dutch financial markets regulator AFM.
John Colley, an M&A expert at the Warwick Business School, suggested PPG is now likely to turn its bid hostile.
“Michael McGarry, CEO of PPG, has not got that much to lose by going hostile now,” he said. “Clearly Dutch politicians are not keen on US owners and management are already hostile.
“The court ruling is not good news for shareholders. Corporate governance in Holland is at risk with such a large offer from PPG given such disdain by the board. Shareholders may now be less likely to invest in the country with such limited rights.”
Read more: Court case to oust AkzoNobel chairman begins