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Akzo's Third Snub of PPG Raises Prospect of Hostile Approach

  • CEO, chairman met with PPG chief for 90 mins in Rotterdam
  • Akzo Nobel says breakup strategy will create better value
Updated on

Akzo Nobel NV rejected PPG Industries Inc.’s third takeover bid in favor of its own breakup strategy, raising the prospect that the U.S. rival will go hostile with its $29.5 billion offer for the Dutch coating and chemical company.

After taking two weeks to evaluate the bid, Akzo Nobel repeated that the proposal is flawed and riddled with risk, defying pressure from shareholders such as Elliott Management Corp. to negotiate. The U.S. company, which has threatened to take the offer directly to investors, is reviewing the response, it said in a statement on Monday that swiftly followed the rebuff and a fruitless face-to-face meeting in the Netherlands on Saturday.