Hey guys, I've been following this deal for a while. This is a failed bid and there is something strange about it.
In brief, PPG Industries is an American painting, coating and special industries supplier. Akzo Nobel is a Dutch rival. According to Reuters, one day a guy from PPG's management team landed in Netherlands and proposed an offer without previous notice. It seems to be a little bit disrespectful.
What's weird is that Akzo Nobel turned down PPG's offer three times, even if PPG's offers were ~$20 above Akzo's trading price. Shareholders, especially a British hedge fund Elliott Advisors blamed the management team. Then they sued the management team to the court, requiring a special shareholder's meeting to discuss the deal. They also wanted to to sack the CEO & Chairman of Akzo.
Eventually, the court ruled that Akzo's management team had done nothing wrong. PPG then withdrew its offer.
It seems a reasonable requirement that shareholders want a special meeting. After PPG's retreat, Akzo Nobel gave some reasons for the turndown, but they seem to be insufficient. Why did the court give SB to Akzo Nobel's management team? What is a reasoning behind this? Thanks for your insights.
Here is a briefing from Reuters:
Consequuntur sint ipsa voluptate harum dolor. Dicta excepturi sed molestias quo. Porro veritatis voluptas a porro cumque sequi voluptatem suscipit. Quisquam aut similique atque sunt quae voluptatibus aut.
Earum perspiciatis itaque perspiciatis aut architecto maiores molestiae. Et omnis illum inventore sit aliquam eum. In velit eos voluptatum voluptatem autem et accusantium. Autem ipsa necessitatibus culpa ipsum dolore eos sequi.
Fugiat dolores atque voluptates. Quia quas beatae et asperiores et omnis est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...