>>> PPG chief claims support from top 20 Akzo Nobel shareholders, not ruling out

PPG chief claims support from top 20 Akzo Nobel shareholders, not ruling out hostile offer
06 APR 2017
PPG Industries [NYSE:PPG] CEO Michael McGarry said the Pittsburgh, Pennsylvania-based chemicals group has contacted almost all of the 20 biggest shareholders in Dutch counterpart Akzo Nobel [AMS:AKZA] and they indicated “virtually unanimous” support for the two companies engaging in merger talks, the Financial Times reported.
McGarry said Akzo Nobel's shareholders are unhappy that they are the lowest priority.
Akzo’s board has refused to enter into talks with PPG, having rejected two takeover bids from the Pennsylvania-based group.
Akzo Nobel told the paper that it is actively engaging with its shareholders about the best strategy for the company, adding that it will give more details at a strategy announcement on 19 April.
Separately, The Times quoted Akzo CEO Ton Buchner, who said the UK government has concerns about what will happen to 80,000 UK pensioners that could be affected by the deal. Akzo was formed from takeovers of the UK chemicals companies Courtaulds and ICI, the item noted.
Buchner noted that Akzo has made annual contributions of almost GBP 300m (EUR 350m) to the pension schemes.
The CEO added that PPG does not understand Akzo’s corporate culture and that its takeover proposal would lead to the loss of thousands of jobs due to duplication of operations.
PPG and Akzo both hold strong market positions in paints for the automotive sector, while Akzo's Dulux brand competes with PPG’s Johnstone’s and Leyland brands, the item said.
Separately, the Daily Mail quoted McGarry, who said no options have been ruled out, including taking its offer directly to Akzo Nobel shareholders
Akzo Nobel’s market capitalisation stood at EUR 19.97bn at the close of trading in Amsterdam on Wednesday, 5 April.