PPG’s attempt to acquire AkzoNobel appears far from over, despite the latter company rejecting a third takeover offer earlier this month.
A group of AkzoNobel shareholders, led by activist hedge fund Elliott Advisors, sued the Dutch company Monday over its management’s rejection to discuss a possible deal with PPG. AkzoNobel previously turned down three increasingly larger offers from PPG and refused to enter negotiation talks.
The Court is expected to decide on May 29 whether shareholders can hold an extraordinary meeting to vote on removing AkzoNobel chairperson Antony Burgmans, which the company initially rejected, according to Bloomberg.
AkzoNobel produces coil and extrusion coatings for glazing systems, metal panels and other façade elements. PPG, which sold the glass segment of its business to Mexico-based Vitro last year, also supplies coil and extrusion coatings for curtainwall, storefront and other building components. The firms are well-known for their paint products and have other offerings in the architectural and industrial segments.
According to media reports, PPG CEO Michael McGarry told reporters Tuesday that his company “remains very interested in pursuing a privately negotiated, substantive deal with AkzoNobel.”
McGarry, who was present at the court hearing Monday, also said PPG asked Dutch financial markets regulator AFM to extend a formal offer filing deadline, which currently stands at June 1. AFM confirmed the request, Reuters reported.