PPG chief prepared for divestments to obtain regulatory approval for Akzo Nobel deal - De Telegraf
PPG Industries [NYSE:PPG] CEO Michael McGarry has indicated he would be prepared to divest parts of the business to gain regulatory approval for a deal with Akzo Nobel [AMS.AKZA], De Telegraaf reported, citing remarks by McGarry at a press conference.
By stating its attitude to divestments, PPG makes it more difficult for Akzo Nobel to cite regulatory issues as a possible dealbreaker in the takeover bid, the Dutch daily reported.
This possibility has not yet been discussed with Akzo Nobel, as they had not asked PPG about it, McGarry remarked.
In case of a hostile takeover bid, PPG thinks it can obtain at least 80% of Akzo Nobel's shares, McGarry said.
As earlier reported, Activist shareholder Elliott launched a courtcase on May 9 against Akzo's refusal of PPG's third offer for the company. A hearing was held on Monday (22 May), the verdict is scheduled for 29 May.
PPG's management is set to meet on 30 May to discuss whether it will proceed with its takeover bid.
A deadline for the submission of a bid document with market regulator AFM expires on 1 June, the item added.