Elliot Advisors urges Akzo Nobel to 'engage' with PPG, has built 3 percent stake

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Investor Elliot Advisors Ltd on Wednesday said it was urging Akzo Nobel on behalf of itself and other shareholders to "engage" with U.S. rival PPG Industries on a possible takeover.

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Earlier on Wednesday, Akzo rejected a second takeover bid from PPG as inadequate.

Elliott said it had accumulated a stake of more than 3 percent of Akzo's shares.

"Although Elliott views PPG���s second bid of EUR 90 per share (cum dividend) as inadequate, it views such level of bid price to be a credible basis for engagement, representing a 39.7 percent premium to Akzo Nobel���s" price before PPG's initial bid was made known on March 9."

Elliott said it believes an "overwhelming majority" of Akzo shareholders agree, citing a survey by Sanford C. Bernstein.

(Reporting by Toby Sterling; editing by Jason Neely)