Akzo Nobel Rejects Raised $24 Billion PPG Takeover Approach
March 22 2017 - 4:49AM
Dow Jones News
By Ian Walker
Dutch paint and chemicals firm Akzo Nobel NV on Wednesday said
it had rejected a raised EUR22.37 billion ($24.19 billion) takeover
proposal from rival PPG Industries Inc., continuing the
trans-Atlantic standoff between the two industrial giants.
The Amsterdam-based company said PPG's received offer worth
EUR88.72 a share -- a 6.9% increase on its earlier offer worth
EUR83 a share -- fails to reflect the current and future value of
the company.
PPG's raised offer consists of EUR56.22 in cash and 0.331 PPG
shares a Akzo Nobel share. Its previous offer, announced and
rejected earlier this month, was EUR54 in cash and 0.3 PPG shares
for each Akzo share.
Akzo said a merger would lead to a large number of disposals
because of the major geographical and segment overlap of both
companies across decorative paints and performance coatings, and
would lead to significant job cuts.
"We are convinced that AkzoNobel is best placed to unlock the
value within our company ourselves," Chief Executive Ton Büchner
said, adding that the board is executing its plan, including the
creation of two focused businesses and new cost structure.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
March 22, 2017 04:34 ET (08:34 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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