Elliott plans legal action if Akzo rejects vote on chairman dismissal

Adjust Comment Print

"PPG has met and communicated with Akzo Nobel's top 20 shareholders; as one of the top 20 shareholders of Akzo Nobel, Elliott has therefore, as a matter of course, met and communicated with PPG". But in fighting off both its USA suitor PPG and activist investor Elliott Management, the Dutch paint group may find itself increasingly isolated from shareholder allies it needs.

Akzo said it would examine whether to hold the extraordinary meeting and respond within a required 14-day period, though spokesman Andrew Wood said Dutch corporate law gives it the power to not hold a meeting if it isn't in the interests of shareholders and the company. It proposed a single agenda item: the removal of supervisory-board Chairman Antony Burgmans, who has spearheaded Akzo's opposition to.

It has also reported Elliott to the regulators, saying it became aware yesterday of Elliott's intention to "privately share potentially price sensitive information with PPG" about its decision to request an EGM.

Pittsburgh-based PPG says that is not true and Akzo should enter talks to better understand the benefits that would flow to those stakeholders from its own proposal.

The offer by PPG that was rejected by Akzo on March 22 was worth over €24 billion.

Details About People Unmasked By Obama Administration Are Very Personal
However, the probe into Russia's interference in the election is ongoing and the subject of two congressional investigations . She said "The allegation is that somehow Obama administration officials utilized intelligence for political purposes".

Elliott hopes to add to pressure on Akzo to negotiate a potential sale to USA coatings manufacturer PPG Industries Inc PPG.N , after Akzo rejected a sweetened 22.4 billion euro ($24 billion) cash-and-stock offer from PPG last month.

Elliott and the group of shareholders it is leading collectively own more than 10% of the Dutch company.

AkzoNobel has said that it is not engaging because it feels the offers undervalue the company, and that a deal would raise complex antitrust concerns.

"AkzoNobel has shared this information with the Dutch Authority for the Financial Markets (AFM) and calls on Elliott Advisors and PPG to clarify their relationship and the history of the communications between the two companies".

The Dutch company plans to release a new strategy on April 19 for spinning off its chemicals business to increase shareholder value.