U.S. paint maker PPG Industries (NYSE:PPG) have ramped up the pressure by raising the proposed offer to Akzo Nobel (AMS:AKZA) on Monday to €26.9 billion.
The offer comes one day before Akzo has its annual meeting, where the group will face shareholders who will demand why the company has not engaged with PPG.
“I think it’s important for them to do the due diligence and to sit down and listen to us,” PPG Chief Executive Michael McGarry said in an interview. “They have run out of excuses to throw on the table to say why they shouldn’t.”
In a letter addressed to Akzo Nobel’s board, PPG wrote:
“We are extending this one last invitation to you and the AkzoNobel boards to reconsider your stance and to engage with us on creating extraordinary value and benefits for all of AkzoNobel’s stakeholders.”
Since the higher proposal, shares in Akzo jumped to a record high of €82.95.
So far, Akzo has insisted that a takeover will result in severe job losses and that it will be better for the group to remain on its own.
Since Akzo has shown signs of interest in the deal.
“The Board of Management and Supervisory Board of Akzo Nobel will carefully review and consider this proposal,” said Akzo.
“There can be no reasonable doubt that PPG’s revised proposal represents a bona fide proposal from a credible counterparty; this proposal clearly warrants sincere engagement from AkzoNobel,” said Elliot Advisors.
“There can be no assurance that a hostile bid – if one were to materialise – would include the same or improved protections and undertakings for AkzoNobel stakeholders,” they added.
PPG’s Mr McGarry wrote in a letter: “Despite your rejections, private and public, of our invitations to date, we are confident you will find that a combination of our two companies will be beneficial to your stakeholders – and more beneficial than the revised strategy that you recently announced in response to our proposals.”