Akzo Nobel raised to buy vs hold, PT EU84 vs EU77 at ABN Amro as brokerage sees value in the shares whether co. is acquired or stays alone.
- Brokerage says PPG’s offer of EU90/share undervalues Akzo; expects PPG will remain friendly and raise its offer
- PPG could pay EU100/share, which would increase the multiple to 9.2x, a very attractive multiple for PPG shareholders
- Management under pressure to create value for investors; ABN Amro expects cost savings program of at least EU200m
- Estimates proceeds of EU8.5b from pending separation of Specialty Chemicals, could be used for acquisitions in Coatings
- ABN Amro also raises Solvay to hold vs sell, PT EU115 vs EU110
- Expects co. will increase its exposure to specialty chemicals; M&A strategy not creating value yet
- Says favors Akzo Nobel, DSM, Tessenderlo, Umicore among chemicals; has neutral view on BASF, Brenntag, IMCD, Solvay