PPG 'Disappointed' By AkzoNobel Rejection, Says Paint Maker Has Poor Corporate Governance

http://www.independent.co.uk/news/world/americas/ppg-disappointed-by-akzonobel-rejection-says-paint-maker-has-poor-corporate-governance-a7723826.html

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PPG Industries (PPG) said Monday that it was "disappointed" AkzoNobel (AKZOY) had again refused to discuss its takeover proposals and accused the Dutch chemicals group of poor corporate governance.

"The failure of the AkzoNobel Boards to engage with PPG to fully evaluate and discuss PPG's proposal reflects a continued lack of proper governance, and is another attempt to avoid a true comparison on stakeholder impacts of PPG's proposal versus AkzoNobel's standalone plan," PPG said in statement.

AkzoNobel formally rejected a third takeover approach from PPG Monday, saying the $26 billion offer undervalues the company and demonstrates a "lack of cultural understanding".

The Dutch paints and chemicals group said it would instead focus on its strategic review plans, unveiled last month, that it feel offer "a superior route to growth and long-term value creation". Those plans include splitting the paints and coatings business from its speciality chemicals group within 12 months and returning the majority of sale proceeds to shareholders.

PPG said that after the third revised offer was made on April 24, another attempt to discuss the proposal was made by PPG last Thursday.

PPG said a hastily-arranged meeting -- scheduled by AkzoNobel on less than 24 hours notice -- took place in Rotterdam the following day between CEO Michael McGarry and lead independent director Hugh Grant and AkzoNobel CEO Ton Buchner and supervisory board chairman Antony Burgmans.

However, PPG said the meeting lasted "less than 90 minutes, and the AkzoNobel chairs stated at the beginning that the meeting was solely for the purpose of reviewing PPG's revised proposal."

"The AkzoNobel chairs stated up front that they did not have the intent nor the authority to negotiate," PPG added.

PPG reiterated that its belief that the proposal is vastly superior in shareholder value creation and provides more certainty to AkzoNobel employees and pensioners.

AkzoNobel shares were marked 2.42% down in Amsterdam at 11:34 CET, to change hands at €77.46. Shares have gained 21.42% over the past three months. PPG shares closed 0.61% up at $110.56 on Friday.