Published: Tue, April 25, 2017
Business | By Pat Ferguson

PPG makes final offer for AkzoNobel takeover

PPG makes final offer for AkzoNobel takeover

Unlike its previous two offers, though, PPG says this time it is prepared to give AkzoNobel a "significant" but as yet undisclosed fee should the two companies agree to terms but competition authorities prohibit the deal.

AkzoNobel has twice rejected PGG's advances and last week announced that it would hive off its special chemicals unit and using the proceeds from the sale to boost its dividend.

Akzo Nobel confirmed it had received the third proposal from PPG and "Board of Management and Supervisory Board of AkzoNobel will carefully review and consider this proposal".

In what has already been a tetchy stand-off between the companies Mike McGarry, the PPG chief executive, said that the offer was "one last invitation" to enter talks.

Shares in Amsterdam-listed Akzo rose 5%.

Known for its strong-arm tactics, Elliott, which holds a stake worth more than 3%, said it would attempt to oust AkzoNobel's managers if the company refused to commence talks with PPG.

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He said: "PPG are taking advantage of a strong dollar, high share price, and low borrowing costs to mount a somewhat opportunist bid".

PPG said its bid represented an increased price of €496.75, including dividend, per Akzo share - comprised of €61.50 in cash and 0.357 shares of PPG common stock. The latest offer values Akzo at about EUR24.6 billion, up from about EUR22.4 billion.

The revised proposal includes an 8 percent increase over PPG's prior proposal March 22 and 17 percent over its original offer on March 2.

"If they don't, PPG is very likely to take this directly to shareholders".

Both moves, if completed, would make Akzo a less attractive target for PPG, although the Pittsburgh-based company has said the primary reason for the merger would be synergies of $750 million between the companies' paints and coatings businesses.

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