UPDATE 2-Paint maker Akzo Nobel concedes to PPG in battle for Tikkurila

* Dutch company Akzo’s bid trumped by PPG

* U.S. rival PPG last week raised bid to 34 euros per share

* Shares in Akzo rise 2%, Tikkurila falls 1.3%

* Akzo still on lookout for value-creating deals, says CEO (Adds detail, share moves, analyst and CEO quotes)

AMSTERDAM, Feb 8 (Reuters) - Dutch paints and coatings maker Akzo Nobel has given up efforts to buy Finnish rival Tikkurila, it said on Monday, four days after U.S. group PPG Industries topped its bid.

The defeat is a sensitive blow for Akzo, which has to surrender a potentially leading position in the Nordics and Baltics to PPG, having fought off an unwanted $26.5 billion takeover offer from the U.S. company in 2017.

Akzo shares rose 2% in early trading in Amsterdam, while Tikkurila dropped 1.3% in Helsinki to slightly below PPG’s latest offer of 34 euros per share.

Analysts had said that Akzo’s bid had been relatively high.

Dulux paint maker Akzo entered the race for the Finnish company last month with a 1.4 billion euro ($1.7 billion) bid, which was 13% higher than the amount initially offered by PPG.

However, Akzo Chief Executive Thierry Vanlancker said PPG’s move last week to raise its bid to 1.5 billion euros meant it no longer made sense for Akzo Nobel to stay in the race.

“The intended acquisition of Tikkurila can no longer compete with more attractive opportunities to create value,” Vanlancker said in a statement.

“Despite more synergies than any other combination with Tikkurila, the intended transaction no longer meets Akzo Nobel’s criteria.”

KBC Securities analyst Wim Hoste said Akzo’s decision was no surprise but there are likely to be further buying opportunities down the road.

“We still see significant consolidation potential in the global paints and coatings market and believe Akzo can play a role in that consolidation,” Hoste said.

Vanlancker said Akzo would remain on the lookout for value-creating acquisitions which fit the company’s strategy. ($1 = 0.8303 euros) (Reporting by Bart Meijer Editing by Edmund Blair and David Goodman)