Activist investor Elliott owns Akzo Nobel's stock -source

March 17 (Reuters) - Activist investor Elliott Management owns shares in Akzo Nobel NV, a person familiar with the matter said on Friday, potentially adding pressure on the Dutch paint maker to consider a sale to U.S. coatings manufacturer PPG industries Inc.
The Wall Street Journal reported earlier on Friday, citing sources, that Elliott had expressed concerns to Akzo Nobel's management about not engaging with PPG and not consulting with the hedge fund.
The source asked not to be identified because Elliott's position in the company, which is below the 3 percent stake reporting threshold in the Netherlands, is not public. Akzo Nobel and Elliott declined to comment.
While Elliott could help organize more Akzo Nobel shareholders against the company's management, mounting a board challenge would be tricky. This is because Akzo Nobel awards a foundation, known as stichting, preferred shares which have special voting power and can be effective at fending off challenges from activist shareholders.
Akzo Nobel rejected a 21 billion euro ($22 billion) bid from larger U.S. rival PPG earlier this month and said it wanted to "unlock value" by spinning off its chemicals business, which accounts for roughly a third of sales and earnings, with a 2016 operating profit of 629 million euros on sales of 4.8 billion euros.
Akzo Nobel said PPG's offer was also risky because cost savings were uncertain, it would lead to a highly leveraged company, and it stood a good chance of being blocked by regulators. It also said the deal would be "detrimental to the societies and economies in which Akzo Nobel operates."
Pittsburgh-based PPG has called its proposal "attractive and comprehensive." While it has not yet made a second offer for Akzo Nobel, it remains interested in the company, according to the sources. (Reporting by Greg Roumeliotis in New York and Liana B. Baker in San Francisco; Editing by Bernard Orr)
 
Shoot

Trending News

Google's firing of anti-diversity memo author was legal: US Labour board

Infibeam tweaks business to keep up with 4G wave

Samsung India sets sales goal of over $10 billion this year

Facebook face big challenge to prevent future US election meddling

Intel hit with 32 lawsuits over security flaws

Apple promises fix for serious Telugu character bug

GrabOnRent launches operations in Mumbai and Gurgaon

Crypto fall fails to drown initial coin offerings

Kalpnik uses AR & VR to help people 'go' to any place of worship

SpaceX is launching its broadband satellites into orbit this weekend

Unilever threatens to cut back online ads over 'toxic' content

Google hires former Samsung Mobile CTO to coordinate Internet of Things projects

Go-Jek plans India foray in second half of 2018

Pivoting away from Cube brought us to the right route: PayU's Jitendra Gupta

Ola parent to invest Rs 400 crore to boost Foodpanda India logistics & tech

Alibaba plans tighter integration of Paytm Mall with BigBasket & XpressBees

MakeMyTrip posts wider loss in Q3, may revisit OYO strategy

Google fined Rs 135.86 crore by CCI for 'search bias'

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Toyota, Suzuki to produce electric vehicles for India market by 2020

Qualcomm rejects Broadcom's $103 billion offer

Fashion e-tailer Voonik asks staff to forgo 3 months' salary

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities