AKZOY Akzo Nobel NV (QX)

By Rory Gallivan

Akzo Nobel N.V. (AKZA.AE) shareholder Elliott Management Corp. on Monday kept pressure on the Dutch paint and chemicals giant, accusing it of failing to engage with Elliott over the appointment of its new chief executive after the previous CEO stepped down because of ill health.

The activist investor, which has a stake of around 9.5%, called on Akzo to confirm when it would hold a meeting of shareholders to vote on the appointment of the new CEO and to clarify whether it planned to confirm its financial targets for 2020, which Elliot said "are not considered credible by the market."

Akzo said last week that CEO Ton Buchner resigned for health reasons but that the company remained on course to spin off its chemicals business to appease shareholders after rejecting a $28 billion takeover bid from U.S. rival PPG Industries Inc.

His resignation came after a monthslong battle to fend off both PPG's takeover attempt and an aggressive legal and public relations campaign led by Elliott to try to push the company into sale talks.

Thierry Vanlancker, the head of Akzo's chemicals business, was appointed as the company's new chief executive.

A spokesman for Akzo said the company would not comment on the specifics of the Elliott statement but would release a market update on Tuesday.

Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter: @RoryGallivan

(END) Dow Jones Newswires

July 24, 2017 07:46 ET (11:46 GMT)

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