PPG (NYSE:PPG) today issued the following statement in connection with its proposal to AkzoNobel (AKZA.AS:AKZOY) to form a combined company:
PPG has reviewed AkzoNobel’s May 8, 2017 response to PPG’s revised proposal of April 24, 2017. PPG continues to believe that its proposal is vastly superior in shareholder value creation compared to AkzoNobel’s new standalone plan and that a combination of the two companies is in the best interests of all stakeholders, including employees.
“We put forward an enhanced, detailed and thorough proposal to AkzoNobel on April 24 that provides a significant share-price premium and offers numerous detailed commitments in the best interests of all stakeholders,” said Michael McGarry, PPG Chairman and CEO. “The remaining questions raised by AkzoNobel are common negotiation points and can be quickly and reasonably resolved through an open, substantive two-way dialogue in which both parties are motivated and engaged. This is the type of discussion we sought in our meeting with Mr. Antony Burgmans and Mr. Ton Büchner in Rotterdam on May 6. AkzoNobel, however, has chosen not to engage in meaningful discussions, has refused our invitation for a meeting of our respective antitrust counsels and has provided no transparency in concluding its standalone plan is superior to PPG’s proposal.”
PPG remains willing to meet with AkzoNobel to engage in meaningful discussions, but without productive engagement, PPG will assess and decide whether or not to pursue an offer for AkzoNobel. PPG will continue to examine all of its options and make decisions for the benefit of its shareholders. PPG will make further announcements if and when appropriate.