LONDON, March 22 (Reuters) - Top-20 Akzo Nobel shareholder Columbia Threadneedle said on Wednesday a takeover by U.S. rival PPG Industries made sense and the Akzo board should engage in talks over a deal.
The statement followed Akzo's rejection of a second, 22.4 billion euro ($24.19 billion) bid from PPG earlier on Wednesday, which while an improvement on the initial 21 billion euro bid was not good enough to warrant engaging.
However, Columbia Threadneedle Investments, the 17th biggest investor in Akzo by firm, joined with U.S. hedge fund Elliott Advisors in calling for management led by Chief Executive Ton Buechner to engage fully with PPG.
"We see strong logic in a combination of Akzo Nobel and PPG and the potential benefits this offers all stakeholders. Akzo needs to recognise this and engage," it said in a statement.
$1 = 0.9262 euros Reporting by Simon Jessop; editing by Carolyn Cohn