Causeway Capital, the largest holder of shares in Dutch paints maker Akzo Nobel on Thursday urged the company to engage in takeover talks with U.S. suitor PPG Industries .
Akzo Nobel on Wednesday rejected an improved 22.4 billion euro takeover offer from PPG, citing cultural differences and an inadequate valuation.
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In an open letter to Akzo's boards, Causeway said a combination of the two companies makes sense.
"While we support management's view that the current bid for Akzo Nobel of 90 euros per share is inadequate, we believe the bid is at a level where management should now engage in discussions with PPG," Causeway President Harry Hartford and CEO Sarah Ketterer wrote.
(Reporting by Toby Sterling; Editing by Alexander Smith)