PPG again increases its bid for Akzo Nobel to €26.9bn, a day before the Dutch target faces shareholders

US paint maker PPG Industries Inc (NYSE:PPG) has increased its takeover bid for Akzo Nobel to €26.9bn a day before the Dutch target – which has declined two previous approaches from PPG – faces shareholders at its annual meeting.

PPG’s new cash and share offer is an increase on its previous proposal pitched at around €24.6bn and comes as Akzo’s shareholders, led by activist hedge fund firm Elliott Advisors, have called on the firm to at least open exploratory talks with PPG.

In a statement today, PPG chief executive, Michael McGarry said: “We are extending this one last invitation to you and the AkzoNobel boards to reconsider your stance and to engage with us.”

He added: “Our revised proposal represents a second increase in price along with significant and highly-specific commitments that we are confident AkzoNobel’s stakeholders will find compelling.”

READ: PPG rebuffed again after increasing its offer

Akzo – whose brands include Dulux paint – confirmed it had received a “third unsolicited proposal” from PPG but was non-committal in its response.

It said: “The Board of Management and Supervisory Board of AkzoNobel will carefully review and consider this proposal.”

PPG said its bid represented an increased price of €496.75, including dividend, per Akzo share — comprised of €61.50 in cash and 0.357 shares of PPG common stock.

The US firm’s previous bid, worth €90 per share made on March 20 was rejected within 48 hours, with Akzo arguing that it substantially undervalued the company and would be bad for other stakeholders, such as employees and customers.

Last week, Akzo presented its case for remaining independent, offering shareholders €41.6bn in extra dividends and detailing plans to sell or float its chemicals arm, representing a third of company sales and profits, within one year.

Story by ProactiveInvestors