Akzo Nobel

Akzo Nobel has been hitting new highs for the past couple of days. Yesterday it hit a new high at Rs.2051.80 and today it hit a new high at Rs.2090.

US paint maker, PPG Industries, which has been trying to take over the Dutch parent company, Akzo Nobel, hiked its proposed offer price further yesterday.

It raised the price by 8% to 26.9 billion Euros or $28.8 billion. PPG has said that this was its final invitation and its deal also includes a break fee in case the deal was rejected by regulators. This was a specific worry raised by Akzo last time the offer was made and one of the reasons why the proposal was rejected twice.

The AGM is scheduled to be held today and the shareholders have more than indicated that they are not happy about Akzo rejecting PPG’s offer and the pressure is on Akzo to sit across and negotiate now.