USA paint maker PPG Industries raised its proposed offer for Akzo Nobel by about 8 percent to 26.9 billion euros ($28.8 billion) on Monday, increasing the pressure on its Dutch rival to enter into talks.
Last week, Akzo presented its case for remaining independent, offering shareholders 1.6 billion euros in extra dividends and detailing plans to sell or float its chemicals subsidiary, which represents a third of company sales and profits, within one year.
PPG chief executive Michael McGarry said the latest bid represented "one last invitation" to Akzo, which has steadfastly rejected two previous offers. Shares in Akzo, the maker of Dulux paint, jumped as much as 6 percent to a record high of 82.95 euros following the improved proposal.
PPG increased its cash-and-share bid to acquire Akzo Nobel to EUR96.75 (about $105.05) a share from EUR88.72.
In an attempt to address Akzo concerns over regulation, the latest PPG offer includes a break fee for if the deal is blocked.
Chappell finally wins on PGA Tour with victory at Texas Open
Ryan Palmer, a West Texas native who cut through winds as strong as 25 miles per hour , had the round of the day with 4-under 68. Seamus Power and Graeme McDowell are both two over par after disapppointing rounds of 74 and 76 respectively.
McGarry critiqued plans Akzo announced last week to spin off its speciality chemicals business. That would increase the value of the company from some 22.4 billion euros to 24.6 billion euros ($26.6 billion).
"Our revised proposal represents a second substantial increase in price along with significant and highly-specific commitments that we are confident AkzoNobel's stakeholders will find compelling".
PPG said the spinoff plan "clearly fails to meet the additional growth opportunities that will be available to all employees of the much larger combined company".
In an interview just after again raising the United States company's offer for AkzoNobel to €96.75 a share on Monday, McGarry told the Financieele Dagblad that AkzoNobel shareholders want and deserve answers to all their questions at Tuesday's shareholders' meeting.
In addition, the Pittsburgh company says it won't relocate any of Akzo Nobel's European productions plants to the U.S.
- Zuccarello, Rangers beat Canadiens 3-1 to reach East semis
- Arbor Day project to beautify Fountain Park
- Volkswagen to pay US$2.8 billion in United States diesel emission scandal
- The Select Comfort Corp
- Paulo Dybala signs new 5-year contract at Juventus
- NASA probe set for final close flyby of Saturn's moon Titan
- Brazil striker Gabriel Jesus in line for return for Man City
- Erdogan says referendum turnout among Turks abroad jumps
- TTV Dhinakaran to keep off party, but yet to quit post
- Russell's HR caps 4-run 9th as Cubs top Brewers