PPG withdraws $29-B AkzoNobel bid
Pittsburgh—PPG Industries has withdrawn its proposal to combine with AkzoNobel and will not pursue a public offer for all issued and outstanding shares of AkzoNobel.
PPG said that it made the final decision after careful consideration, including the stakeholder interests of both companies.
“We were hopeful throughout this process that AkzoNobel’s Boards would see the merits of our compelling proposal to combine our two great companies and create significant shareholder value and a more sustainable business for the future,” said Michael McGarry, PPG Chairman and CEO.
“We made a final attempt for engagement late last week and through a letter to AkzoNobel (attached). In that letter, we addressed AkzoNobel’s stated commentary around value, certainty, timing and stakeholder considerations, and provided additional and specific commitments and assurances, including a significant break-fee and an offer to negotiate a nominal price increase as part of an agreed transaction. However, AkzoNobel’s Boards have consistently refused to engage and did not respond to our call or letter. As a result, we believe it is in the best interests of PPG and its shareholders to withdraw our proposal to AkzoNobel at this time.”
Akzo Nobel NV Chairman Antony Burgmans has resisted numerous offers over the course of three months, as well as an attempt by Elliott Management Corp. to remove him to jump-start talks with PPG. A court this week rejected a petition by Elliott to force a shareholder vote on firing the chairman. The petition claimed that Mr. Burgmans was in “flagrant breach” of his duties to investors for rejecting PPG’s offers. Elliott declined to comment on Akzo or its view on the bid failing.
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