PPG seeks extension for Akzo bid while holding firm on price

Bloomberg

PPG Industries Inc. Chief Executive Officer Michael McGarry is seeking to extend by two weeks a deadline to make a firm bid for Akzo Nobel NV and ruled out raising its latest $29.5 billion offer, the third to be rejected by the Dutch rival.
The US paint maker will challenge a June 1 deadline imposed by the Dutch regulator before which it has to make an offer for Akzo Nobel or walk away for six months, McGarry told reporters on Tuesday in Amsterdam, where the Dutch company is based. In setting the date under the stock market rules, the clock should have started on March 22, he said.
“Right now we’re challenging the Dutch regulator on whether the June 1 date is appropriate,” the CEO said. “We think the date should actually be either June 14 or June 15. We have asked them to substantiate their position.”
The wrangle with the regulator is the latest twist in the battle for control of the Dutch paint and coatings maker. The two sides, along with activist shareholder Elliott Management Corp., spent a day in court Monday over a separate dispute. PPG has been considering whether to take its offer directly to shareholders since Akzo Nobel rejected the latest offer two weeks ago.
Investors including Elliott have called for the Dutch company to start talks, but management led by Chairman Antony Burgmans and CEO Ton Beuchner argue that the approach undervalues the company. A Dutch court ruling on whether Akzo Nobel should hold a vote on the removal of Burgmans is scheduled for May 29, and PPG will wait for the verdict before deciding its next move, McGarry said.
The most recent bid is as high as the company is prepared to go, the PPG CEO said. The Dutch company’s plan to remain independent offers less value for investors and most shareholders are calling for a negotiation, he said.