PPG Industries sweetens offer for AkzoNobel

Dulux owner AkzoNobel confirmed on Monday that it has received a third unsolicited and conditional takeover proposal from US chemicals manufacturer PPG Industries.

"In accordance with its fiduciary duties and acting under the Dutch governance code the board of management and supervisory board of AkzoNobel will carefully review and consider this proposal," it said.

PPG said it had sweetened the offer to €96.75 per share, which is an increase of €6.75 per share. This is made up of €61.50 in cash and 0.357 shares of PPG common stock.

Chief executive officer Michael Garry said in a letter to Akzo: "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.

"Our revised proposal represents a second increase in price along with significant and highly-specific commitments that we are confident AkzoNobel’s stakeholders will find compelling. We stand ready to work with you expeditiously to complete a targeted due diligence review and to negotiate a definitive agreement for the combination."

In March, AkzoNobel rejected a second bid from PPG, saying it substantially undervalued the group and neglected to address the significant uncertainties and risks for shareholders and other stakeholders.

Since then, it has come under pressure from private investment firm Elliott Management Corp, which owns a 3% stake in the company, to engage in discussions with PPG.

At 1300 BST, the shares were up 4.5% to €81.72.