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US paintmaker PPG has fired what it called its “last” friendly invitation to buy Akzo Nobel, by tabling a third bid to take over its Dutch rival for €24.6bn.

PPG made a new cash-and-stock offer for the owner of the Dulux brand of paints, consisting of €61.50 in cash and 0.357 shares of PPG’s common stock. The figure includes a dividend payment that Akzo Nobel’s shareholders would be due should the company remain independent. The revised proposal valued each share in Akzo Nobel at €96.75.

PPG said the offer valued Akzo Nobel’s equity at €24.6bn. The company’s second bid was at €90 per ordinary share, including a dividend payment, comprised cash of €57.50 and 0.331 share of PPG common stock.

The new approach will raise the tempo in what has become a transatlantic tussle for one of Europe’s oldest industrial concerns. Akzo Nobel has refused two prior offers on the grounds they undervalued the company, would lead to substantial job cuts and result in significant disposals to appear antitrust regulators. PPG had said that its second bid valued Akzo Nobel’s equity at €22.7bn.

In a letter addressed to Akzo Nobel’s boards and made public on Monday, PPG wrote:

We are extending this one last invitation to you and the AkzoNobel boards to reconsider your stance and to engage with us on creating extraordinary value and benefits for all of AkzoNobel’s stakeholders.

Akzo Nobel said:

In accordance with its fiduciary duties and acting under the Dutch governance code the Board of Management and Supervisory Board of AkzoNobel will carefully review and consider this proposal.

Copyright The Financial Times Limited 2017. All rights reserved.
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