* PPG's bid is 50 pct premium to Akzo's shares before first
* Akzo says it will consider bid according to its legal duty
* Company's boards will face questions from shareholders
(Updates with details, quotes.)
By Toby Sterling
AMSTERDAM, April 24 PPG Industries, the
U.S. paintmaker that is pursuing a takeover of Dutch peer Akzo
Nobel, on Monday increased its proposed cash and share
offer to 26.9 billion euros ($28.8 billion, from around 24.6
The move comes a day before Akzo, which has declined two
previous approaches from PPG, faces a group of unhappy
shareholders at its annual meeting. Akzo shares jumped 6 percent
to a record high of 82.86 euros by 1130 GMT.
The shareholders, led by hedge fund Elliott Advisors, say
Akzo should at least open exploratory talks with PPG to more
closely examine their proposal.
"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
"Our revised proposal represents a second increase in price
along with significant and highly-specific commitments that we
are confident AkzoNobel's stakeholders will find compelling,"
Akzo Nobel confirmed it had received a "third unsolicited
proposal" from PPG but was non-committal in its response.
"The Board of Management and Supervisory Board of AkzoNobel
will carefully review and consider this proposal," said Akzo,
whose brands include Dulux paint.
A spokesman for Elliott said the fund was examining PPG's
latest proposal and could not immediately comment.
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.
That is a 50 percent premium from Akzo Nobel's closing price
of 64.42 on March 8, the day before PPG confirmed it had made a
proposal to buy Akzo at 80 euros per share.
A second bid worth 90 euros per share on March 20 was
rejected within 48 hours, with Akzo arguing that it
substantially undervalued the company and would be bad for other
stakeholders, such as employees and customers.
Last week, Akzo presented its case for remaining
independent, offering shareholders 1.6 billion euros in extra
dividends and detailing plans to sell or float its chemicals
arm, representing a third of company sales and profits, within
Both moves, if completed, would make Akzo a less attractive
target for PPG, although the Pittsburgh-based company has said
the primary reason for the merger would be synergies of $750
million between the companies' paints and coatings businesses.
(Reporting by Toby Sterling. Additional reporting by Maya
Keidan. Editing by Keith Weir/Jason Neely)