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| PPG drops bid to buy Dulux owner AkzoNobel | PPG drops bid to buy Dulux owner AkzoNobel |
| (35 minutes later) | |
| US paints firm PPG has dropped a proposal to buy the Dulux-owner AkzoNobel after the Dutch firm spurned several informal offers. | US paints firm PPG has dropped a proposal to buy the Dulux-owner AkzoNobel after the Dutch firm spurned several informal offers. |
| PPG boss Michael McGarry said it had made a final offer for Akzo last week, but the firm did not respond. | PPG boss Michael McGarry said it had made a final offer for Akzo last week, but the firm did not respond. |
| "As a result, we believe it is in the best interests of PPG and its shareholders to withdraw our proposal to AkzoNobel at this time," he said. | "As a result, we believe it is in the best interests of PPG and its shareholders to withdraw our proposal to AkzoNobel at this time," he said. |
| In April, PPG offered to pay 26.9bn euros (£22.8bn) for Akzo. | In April, PPG offered to pay 26.9bn euros (£22.8bn) for Akzo. |
| This had improved on two previous bids, but Akzo again rejected it, saying it undervalued the firm. | |
| It also accused PPG of a "lack of cultural understanding of the brand" and said its own plans for growth better served shareholders. | |
| In a statement on Thursday, PPG said it had promised additional commitments, including a significant break-fee, as part of its final offer. | |
| It said it still believed a combined company would "create more opportunities" for customers, employees and shareholders. | |
| Under Dutch securities rules, PPG may not approach Akzo again during a six-month cooling-off period. | |
| AkzoNobel shares fell sharply on the news before regaining ground to trade 0.46% lower. | |
| Many of Akzo's largest shareholders supported a tie-up, although investors were said to have been expecting Thursday's decision, given Akzo Nobel's fierce opposition. | |
| In April, Akzo put forward an alternative plan to the merger, promising to give shareholders 1.6bn euros in extra dividends. | |
| It also said it would spin off its chemicals subsidiary, which represents a third of company sales and profits. |