Akzo Nobel Chief Quits Over Health
July 19 2017 - 4:15AM
Dow Jones News
By Ben Dummett
Dutch paint giant Akzo Nobel NV said Wednesday its chief
executive has resigned for health reasons, though the unexpected
move won't slow its plan to spin off its chemicals business to
appease shareholders after it rejected a $28 billion takeover bid
from U.S. rival PPG Industries Inc.
Ton Büchner's decision comes after a monthslong battle to fend
off both PPG's takeover attempt and an aggressive legal and public
relations campaign led by Elliott Management Corp., a U.S. activist
investor and one of Akzo's largest shareholders, to try to push the
company into sale talks.
Akzo didn't disclose Mr. Büchner's health issues, but said the
executive believed that he would "endanger" his health if he
continued in the role.
"This is a very recent development; this is not about weeks ago,
but is about days ago," Chairman Antony Burgmans told reporters on
a conference call Wednesday.
Akzo is in the process of spinning off its specialty chemicals
business from its paints and coatings operations, either through an
initial public offering or a sale. The Amsterdam-based company is
under pressure from shareholders to complete the deal, after
promising such a move would generate more value than selling itself
to PPG.
Thierry Vanlancker, the head of Akzo's chemicals business, has
been appointed as Akzo's new chief executive and said he has no
plans to divert from the current strategy.
Write to Ben Dummett at ben.dummett@wsj.com
(END) Dow Jones Newswires
July 19, 2017 04:00 ET (08:00 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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