PPG Industries Says Disappoined With AkzoNobel's Proposal Rejection

(RTTNews) - PPG Industries Inc. (PPG) Monday said it is disappointed that Dutch paints and chemicals maker AkzoNobel N.V. (AKZA.AS, AKZOY) rejected its third conditional proposal to form a combined company.

PPG said AkzoNobel has once again refused to enter into a negotiation regarding a combination of the two companies, ignoring the best interests of its stakeholders, including long-term shareholders who overwhelmingly support engagement.

PPG can confirm that its Chairman and CEO Michael McGarry and its lead independent director Hugh Grant met May 6 with Antony Burgmans, Chairman of the Supervisory Board of AkzoNobel, and Ton Büchner, CEO and Chairman of the Board of Management of AkzoNobel.

PPG said it continues to believe its proposal is vastly superior in shareholder value creation and provides more certainty to employees and pensioners than AkzoNobel's recently announced new standalone plan.

PPG's proposal represents a 50 percent premium over AkzoNobel's unaffected stock price and 24 percent premium to its stock price after the announcement of its standalone plan.

The company noted that the failure of the AkzoNobel Boards to engage with PPG to fully evaluate and discuss PPG's proposal reflects a continued lack of proper governance.

PPG said it will review the full details of AkzoNobel's response.