Akzo Nobel NV on Wednesday said it has reached an agreement with Elliott Management Corp., following a monthslong standoff during which the activist investor called for changes at the Dutch chemicals company after a failed $27.6 billion bid from PPG Industries Inc.
Akzo said the agreement would "normalize the relationship" between the company and its shareholders and suspend all litigation for at least three months. Elliott will also support the appointment of Thierry Vanlancker, who Akzo recently appointed as chief executive, to the board, Akzo said.
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It also includes alignment on the Akzo strategy to spin off its specialty-chemicals business.
The deal follows a monthslong dispute between Elliott and Akzo. As one of Akzo's largest investors, Elliott mounted a bold public-relations and legal campaign to try to force the Amsterdam-based company into unwanted sale talks with PPG.
Elliott argued that shareholders had lost confidence in Akzo's leadership after it rejected calls from Elliott and several other large shareholders for the company to hold a vote on entering into sale talks.
Last week, Elliott lost its latest legal challenge to remove Akzo Chairman Antony Burgmans.
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(END) Dow Jones Newswires
August 16, 2017 02:55 ET (06:55 GMT)