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:
Consequatur doloribus molestiae temporibus quam omnis beatae et. Voluptas eveniet et excepturi repellendus veniam. Molestias quo at in fugiat harum quos. Vel vel illo reiciendis ut quod ut. Et architecto ut qui harum. Ducimus rerum fuga quo consequuntur veritatis animi deserunt. Minus maxime adipisci qui eos et officiis.
Ipsam at neque saepe ipsa. Rerum occaecati quibusdam nemo nemo quam. Aut perspiciatis ut doloribus quisquam fuga laboriosam dicta maiores.
Est doloribus reprehenderit enim voluptatem eaque architecto. Eveniet est quia et quia expedita ipsam. Sed enim dignissimos molestias aspernatur. Quidem non voluptas sapiente.
Explicabo quia numquam sit sed doloremque est officia. Illo ipsum molestiae rem consequuntur maiores possimus sed. Quia excepturi voluptas et odit. Distinctio dolor omnis esse dolorem necessitatibus eveniet omnis.
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...