AkzoNobel buries hatchet over PPG takeover

The Hague: Dutch paintmaker AkzoNobel said it has buried the hatchet with a key shareholder in a long-running spat over a planned takeover by US-based chemical giant PPG. But the pressure remains on AkzoNobel to prove to investors that their restructuring strategy is superior to PPG’s takeover plan, analysts said. US activist investor Elliott Advisors, which holds a stake of some 9.5 per cent in AkzoNobel, is in favour of a tie-up with main US rival PPG that would create a new global leader in paints. “Activist” investors purchase sizeable stakes in a company to put pressure on management to change strategy, rather than simply pocket dividend payouts. And Elliott has been angered by the Dutch group’s rejection of three different multi-billion-euro takeover offers from PPG, accusing it of “losing the trust of shareholders” and creating “a crisis of confidence” in the company’s management. — AFP