PITTSBURGH, US: US-based PPG Industries Inc (PPG) will continue to pursue its merger bid for Dutch paint company AkzoNobel NV, to combine the two companies.
PPG believed in the merits of combining the two companies, after carefully studying AkzoNobel's new strategic plan, PPG said in a statement.
AkzoNobel's new strategic plan will be riskier and create more uncertainty for AkzoNobel stakeholders, employees and pensioners. The revised plan would create two smaller, unproven companies resulting in additional restructuring, PPG said.
PPG’s proposal would create more value, as it provides an immediate cash payout far in excess of AkzoNobel’s special dividend and is supplemented with PPG shares.
PPG has proven a record of executing on strategic actions and driving performance and growth, and we continue to believe that a combination of PPG and AkzoNobel is in the best interest of all stakeholders. The combined company will be much better positioned to take advantage of the opportunities in our markets and deliver superior shareholder returns, the company added.
We have not heard anything today that changes our belief in the value of combining the two companies, and now is the time for a complete review and full consideration of our compelling offer to combine PPG and AkzoNobel. We will be stronger together, the company concluded.
AkzoNobel shareholder Elliott Advisors which was urging for a meeting between the two companies to settle a deal has supported PPG, saying the certainty of the US firm’s bid outweighs risks the Dutch company won’t meet new goals.
© Worldofchemicals News
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