- Title: Paint maker Akzo plans spin-off to stave off merger
- Date: 19th April 2017
- Summary: LONDON, ENGLAND, UK (APRIL 19, 2017) (REUTERS) SOUNDBITE (English) LAITH KHALAF, SENIOR ANALYST, HARGREAVES LANSDOWN, SAYING: "US companies seem to be flexing their muscles at the moment. There's a stronger dollar which is obviously making for more tempting targets for takeovers overseas. Akzo are putting together a plan that's going to mean it's splitting off its chemicals business and also returning cash to shareholders. But the problem they have is that investors aren't really on side, particularly activist investors. They want them to go and speak to PPG about the takeover target and perhaps flush out a better bid."
- Embargoed: 3rd May 2017 15:43
- Keywords: Dulux Akzo Nobel PPG paint merger takeover results
- Location: VARIOUS
- City: VARIOUS
- Country: Netherlands
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA0046D2EGEL
- Aspect Ratio: 16:9
- Story Text: Akzo Nobel, the Dutch paint maker trying to fend off a 24.6 billion euro ($26 billion) takeover by U.S. rival PPG Industries Inc, on Wednesday (April 19) outlined an alternative plan to separate its chemicals business and pay shareholders 1.6 billion euros in extra dividends this year.
Akzo said it would sell or list the division, which accounts for about a third of sales and profits, within 12 months.
The Dulux owner has twice rejected takeover proposals from Pittsburgh-based PPG, despite strong encouragement from many of its shareholders to engage in merger talks.
Investors and analysts have largely been skeptical of whether Akzo's alternative plan can rival PPG's proposed offer of 90 euros per share in terms of value. - Copyright Holder: REUTERS
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