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PPG rebuffed again after increasing its offer for Akzo Nobel
Paints and coatings giant PPG Industries Inc (NYSE:PPG) has had its latest offer for European rival Akzo Nobel rebuffed.
Having had its first offer rejected out of hand by the Dutch company, PPG upped its offer to €90 a share, with Akzo shareholders also entitled to keep the latest dividend.
The 90 euros offer comprises cash of €57.50 plus 0.331 of a PPG share for each ordinary share of Akzo.
Including the assumption of net debt and minority interests, the proposed transaction values Akzo at around €24.5 billion, or US$26.3 billion. The previous bid valued Akzo at around US$22bn, or €83 a share.
Shares in Akzo Nobel slipped 1.3% to €75.59 on the news.
“We believe the revised proposal presents an opportunity for AkzoNobel’s shareholders to realize extraordinary value, by any measure, for their shares in AkzoNobel. It provides them with a premium valuation and the opportunity to receive substantial and immediate cash consideration and participate in the success of the enterprise through ownership of shares in the combined company,” said Michael McGarry, who is both chairman and chief executive officer of PPG.
Akzo said PPG’s proposal failed to address many of the board’s concerns, such as the prospect of regulators vetoing the deal; the gearing the merged entity would take on; and the job losses that are likely to ensue.
Akzo has mooted the idea of selling off or floating its chemicals division as a means of mollifying those shareholders after a quick buck.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/175234/ppg-rebuffed-again-after-increasing-its-offer-for-akzo-nobel-175234.html
