Attempted acquisition by PPG Industries
In March 2017, PPG Industries launched an unsolicited takeover bid of €20.9 billion, which was promptly rejected by AkzoNobel's management.[20] Days later, PPG again launched an increased bid of €24.5 billion, which was again rejected by AkzoNobel's management.[21] A number of shareholders urged the company to explore the offer and subsequent negotiations.[22][23] In April, activist investor, Elliot Investors' called for the removal of Chairman Antony Burgmans following Akzo's refusal to submit to discussing with PPG. Elliott, which has a 3.25% stake in the company, claimed it was one of a group of investors that met the Dutch legal threshold of 10% voting-share support, which is needed to call an extraordinary meeting to vote on a proposal to remove Burgmans.[24] On 13 April, Templeton Global Equity said it was among another group of investors calling for an extraordinary meeting of AkzoNobel shareholders to discuss Burgmans continued tenure as Chairman.[25] Later, in the same month Akzo outlined its plan to separate its chemicals division and pay shareholders €1.6 billion in extra dividends, in order to attempt to hold-off PPG.[26][27] The new Akzo strategy was dismissed by PPG, which claimed that their offer represented better value for shareholders,[28][29] supported by activist Akzo shareholder, Elliot Advisors.[30] On 24 April, a day before Akzo's annual meeting of shareholders, PPG increased its final offer by approximately 8% to $28.8 billion (€26.9 billion, €96.75 per share)—with Akzo's share pricing rising 6% to a record price of €82.95 per share.[31] Akzo shareholder, Columbia Threadneedle Investments, urged the company to open dialogue with PPG,[32] whilst PPG claimed that the deal would add to earning within its first year.[33] Days later one of the UK's largest pension scheme investors, Universities Superannuation Scheme (USS), urged Akzo to engage with PPG.[34] On 2 May, Reuters revealed that the supervisory board of Akzo was meeting to discuss how to deal with PPGs third offer, still maintaining it did not value the company highly enough.[35]
In early May, Akzo again rejected PPGs bid, citing the deal still undervalued the company, as well as potentially facing antitrust risks, and not addressing other concerns such as "cultural differences". Under Dutch company law, PPG had to then decide to either make a formal bid or walkaway.[36] In early June, PPG chose to walk away from the potential deal.[37][38] As part of Akzo's defense to shareholders, many of whom pushed for the deal, chief executive Ton Büchner agreed to split Akzo in two and achieve increased financial targets.[39] Büchner stepped down as CEO in July 2017, citing health reasons. He was succeeded by Thierry Vanlancker, former chief of the company's chemicals division.[40]
