Dutch paints and chemicals maker AkzoNobel NV on Thursday spurned a takeover offer by PPG, but the Pittsburgh coatings company said it will continue to pursue a deal despite political sentiment against foreign takeovers in the Netherlands.
PPG’s unsolicited bid for the Dutch company totals 21 billion euros ($22 billion), or about 83 euros per share, including 54 euros cash plus 0.3 shares of PPG for each Akzo share.
Akzo’s shares jumped by 13 percent Thursday to close at 72.79 euros while PPG shares fell by more than 3 percent to close at $102.93, down $3.90. PPG’s stock had surged Wednesday on news of the bid.
Akzo said the offer was too low and was reviewing its options, including the possibility of spinning off its chemicals business to boost its value.
“The unsolicited proposal we received from PPG substantially undervalues our company and contains serious risks and uncertainties,” Ton Buchner, Akzo’s chief executive, said in a statement.
“The proposal is not in the interest of AkzoNobel’s stakeholders, including its shareholders, customers and employees, and we have unanimously rejected it.”
Securities analysts said it’s likely PPG will increase its bid and could possibly structure a friendly offer for Akzo.