Akzo Nobel Rejects Third Hostile Bid from PPG

Sarla Buch
08 May, 2017
New York City

Akzo Nobel rejected third and revised

[R]4:00 PM Frankfurt – Akzo Nobel rejected third and revised €26.9 billion offer from the rival PPG. Numis profit plunged 36%. Swedish Match net tumbled 34% but revenues jumped.[/R]

In London trading, FTSE 100 index slid 0.54 to 7,296.89 and in Frankfurt the DAX index fell 7.11 to 12,709.72.

In Paris, CAC 40 index slumped 49.62 or 0.9% to 5,382.78.

Akzo Nobel N.V dropped 2.9% to €77.13 after the Netherland-based paints and coatings maker today rejected the third takeover offer of €26.9 billion or £22.8 billion or $27.05 billion from the U.S. rival''s PPG Industries Inc. in a two-months.

The third offer from PPG offered €96.75 per share that was revised from the offer of €83 per share on March 9th and increased to €88.72 per share later by the end of March.

In a statement Akzo said """"the company concluded that interests of shareholders and stakeholders are best served by its own strategy to accelerate growth and value creation.""""

""""The PPG proposal undervalues Akzo that contains significant risks and uncertainties, makes no substantive commitments to stakeholders and demonstrates a lack of cultural understanding,"""" said chief executive officer Ton Buechner.

However, under the Dutch securities laws, PPG may now decide to move to a formal bid ahead of a June 1 deadline without the support from Akzo boards.

Numis Corporation Plc slipped 0.8% to 276.12 pence after the U.K.-based brokerage and advisory services provider said revenues in the first-half ending in March declined 8% from a year ago to £52.4 million.

Profit in the period plunged 35.8% from a year ago to £8.8 million from £13.7 million and diluted earnings per share slumped to 7.6 pence from 11.6 pence.

Swedish Match AB gained 1.2% to 288.10 Swedish kronor after Sweden-based cigars and chewing tobacco products maker reported sales in the first-quarter jumped 6% from a year ago to 3.78 billion kronor.

Net income in the quarter tumbled 34% from a year ago to 930 million kronor from 1.4 billion kronor and diluted earnings per share slumped to 5.06 kronor from 7.44 kronor.

The snus and moist snuf maker said operating profit in the quarter declined 29.4% to 1.2 billion kronor from 1.7 billion kronor in the same period a year ago.