Published: Tue, April 25, 2017
Markets | By Lucia Cruz

PPG Industries sweetened its bid for Dutch peer Akzo Nobel

PPG Industries sweetened its bid for Dutch peer Akzo Nobel

McGarry said given the support from Akzo Nobel's shareholders for a deal, PPG meant to submit a formal offer for Akzo Nobel shares by June 1, regardless of whether its boards have agreed to talks by that time. The CEO announced a plan last week to split the company in two and reward shareholders with a higher dividend, saying it offered more value than PPG's offer. But it has come under pressure from Elliott Management, the USA hedge fund founded by billionaire Paul E. Singer, and other shareholders to engage with its suitor.

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

The Polycell manufacturer, which employs 3,000 staff across the United Kingdom, has previously warned that any deal with PPG would trigger "significant job cuts" and create uncertainty for thousands of workers across the globe.

'In light of your prior public responses, we have no choice but to make this letter public.

"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", added McGarry.

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A deal could result in job losses as operations are streamlined, though PPG insisted Akzo Nobel's marine and protective coatings business would continue to be based in both the United Kingdom and the Netherlands.

PPG is offering Akzo holders cash and stock valued at 96.75 euros a share including a dividend that Akzo plans to pay, Pittsburgh-based PPG said in a statement Monday.

While Akzo said then the plan had "substantially fewer risks, uncertainties and social costs" and being acquired, PPG countered on Monday that the separation would create two "unproven standalone companies with uncertain market valuations and substantial risks".

This latest bid follows AkzoNobel's launch of a new strategy April 19 which was aimed at reassuring company shareholders about its future profitability and growth, in which AkzoNobel's Specialty Chemicals unit will be separated into a new business unit and divested within 12 months.

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