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.
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)