PPG Raises AkzoNobel Takeover Bid To $29B

The potential tie-up is now valued at 26.9 billion euro

United States paints and coatings group PPG Monday upped its offer in a battle to take over the world's leading paintmaker AkzoNobel, with a new bid valuing the Dutch company at about 24.6 billion euros.

"We are extending this one last invitation to you and the AkzoNobel boards to reconsider your stance and to engage with us", PPG Chief Executive Michael McGarry said in a statement on Monday.

While Akzo Nobel turned down the prior offer, it did make the Dutch company consider options for its specialty chemicals business.

The trans-Atlantic battle between the two paint companies has seen its fair share of drama in recent weeks, thanks it part to Akzo's hedgie shareholder.

The hedge fund got so excited about its planning two weeks ago that Gordon Singer, Elliott portfolio manager and Paul Singer's son, accidently copied an Akzo rep on an email outlining its plans to talk to PPG. The CEO has said he won't rule out making a hostile offer directly to Akzo shareholders.

PPG said its bid represented an increased price of 96.75 euros, including dividend, per AkzoNobel share - comprised of 61.50 euros in cash and 0.357 shares of PPG common stock.

'Our revised proposal represents a second substantial increase in price along with significant and highly specific commitments that we are confident Akzo Nobel's stakeholders will find compelling'.

PPG said the spinoff plan "clearly fails to meet the additional growth opportunities that will be available to all employees of the much larger combined company".

He said PPG believed the deal would add to its earnings from the first year and given the support from Akzo shareholders, the US firm would submit a formal offer to the Dutch financial markets regulator by June 1, regardless of what Akzo does. The company also said the Dutch company's European production facilities wouldn't be relocated to the U.S.

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