Dutch paint maker Akzo Nobel rejected on Monday a third takeover proposal from larger US rival PPG Industries, that was valued at $29.51 billion, saying it undervalues the company, faces antitrust risks, and does not address other concerns such as “cultural differences.”
A group of Akzo shareholders, which are led by the hedge fund Elliott Advisors, support a merger of the two companies and has been pushing for talks, but Akzo said in a statement it would not engage in discussions with the US company.
PPG’s latest offer in cash and shares values Akzo’s stock at around 96.75 euros per share. That’s a 50 percent premium to where Akzo shares traded before PPG’s interest became known on March 9.
PPG must now decide whether it will move to a formal bid ahead of a June 1 deadline under Dutch securities laws without the support of Akzo’s boards.
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