Dutch paints-and-chemicals maker Akzo Nobel NV (AKZA.AE) on Monday said it had rejected a third unsolicited takeover bid by U.S. paints giant PPG Industries Inc. (PPG).
Last month, PPG submitted its latest offer, raising its bid to EUR24.6 billion, or EUR96.75 a share, from a sweetened EUR88.72-a-share bid in March. At the time, PPG called the latest proposal "one last invitation" for Akzo's board to engage in talks.
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Akzo said in a statement Monday that PPG's latest offer undervalued the company.
The Dutch company said it had concluded that its own plan for the company, which it unveiled in April, provided a "superior route to growth and long-term value creation" and was in the best interest of its shareholders.
The company also said its strategy included increased shareholder returns, including a 50% higher dividend for 2017 and a EUR1 billion special cash dividend payable in November.
Also, Akzo plans to separate its specialty chemicals business from its paints-and-coatings operation within 12 months, with the vast majority of net proceeds to be returned to shareholders, it said.
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(END) Dow Jones Newswires
May 08, 2017 01:58 ET (05:58 GMT)