Dulux owner Akzo Nobel (AMS:AKZA) has rejected the third takeover bid from PPG Industries (NYSE:PPG), who described the €26.9 billion offer as the last “friendly” attempt to buy Akzo.
The US rival had raised the offer for the Dutch company to €96.75 per share, an eight percent increase on the previous offer.
Akzo Nobel has the backing of the Dutch government to resist PPG, however, the rejection of the takeover will inevitably anger some shareholders, including activist investor Elliott Advisors.
Akzo Nobel’s chief executive, Tom Buchner said: “As part of our fiduciary duties we conducted an extensive review of the third proposal from PPG.
“This process included myself and Antony Burgmans meeting with the CEO and lead independent director of PPG to understand their proposal in more detail.
“The PPG proposal undervalues AkzoNobel, contains significant risks and uncertainties, makes no substantive commitments to stakeholders and demonstrates a lack of cultural understanding.
“AkzoNobel has outlined a compelling strategy to accelerate growth and value creation which we believe will deliver significant long-term value for our shareholders and all other stakeholders.
“We will deliver this within a clear timeline, without the substantial level of risks and uncertainties attached to the alternative proposal,” he added.
AkzoNobel employs 3,500 staff. PPG has 10 manufacturing and research and development sites.
To further chances of a takeover, PPG wrote a letter to Akzo Nobel’s board in attempts to win more shareholder support.
PPG said that the third bid represented “one last invitation” to the Dulux owner to “engage with us on creating extraordinary value and benefits for all of AkzoNobel’s stakeholders”
The offer was made several days after AkzoNobel had announced plans to increase shareholder value by selling off its chemicals business, returning an estimated £1.6 billion to investors in the process.
PPG has not yet given a response to the rejection of their third bid.