Akzo Nobel rejects improved bid from US rival PPG

[AMSTERDAM] Dutch paints and coatings maker Akzo Nobel rejected on Wednesday a second takeover proposal from US rival PPG Industries saying the offer was too low and too risky.

Akzo said in a statement the new non-binding PGG proposal made on March 20 was worth 88.72 euros (S$134.34) per share in cash and shares, up from a first offer worth 83 euros per share.

The Dutch company's shares were trading down 2.5 per cent at 74.67 euros at 0815 GMT.

Akzo said the second unsolicited proposal did not address its concerns which included the valuation, risks the deal might not be accepted by regulators, the leverage of the merged company and job losses.

Akzo's boards unanimously rejected the new offer and reiterated that they would prefer to pursue their own strategy of selling or floating the company's chemicals division.

REUTERS