AkzoNobel plans to spin off Specialty Chemicals unit

20 April, 2017, 06:33 | Author: Eloise Marshall
  • AkzoNobel plans to spin off Specialty Chemicals unit

Akzo, which owns the Dulux paint brand, had earlier fleshed out its alternative plan to separate its chemicals business and pay shareholders 1.6 billion euros ($1.7 billion) in extra dividends this year rather than accept a 24.6 billion euro takeover by its US rival.

Troubled AkzoNobel's offer to hand back cash worth nearly £1.3bn failed to appease leading investors as the paints giant continues to face pressure to engage in takeover talks with American rival PPG Industries. But it has been criticised by a series of leading shareholders who have called on Akzo to open discussions with the United States business.

Elliott, which has a 3.25 percent stake in Akzo and has been critical of the company management, kept up the pressure.

Akzo, which employs around 3300 people in the United Kingdom, argued that the hostile bid contains "serious risks and uncertainties" for staff.

However, PPG countered by saying that its proposal would provide shareholders with an immediate cash payout that far exceeds Akzo's proposal. Indeed the company has been invited to attend a Extraordinary General Meeting, an invitation to which Akzo Nobel has 14 days to respond. Valued at £6.7 billion, it accounts for about a third of sales and profits.

PPG Industries, the United States firm attempting an unsolicited and unwelcome takeover of the Dulux maker, has today published an open letter to Akzo's "stakeholders" telling them: "We will be stronger together".

Akzo Nobel NV has outlined a new strategy which will see its Specialty Chemicals unit separated into a new business unit and divested within 12 months. AkzoNobel stated in a press release: "It will generate superior, faster and more certain value creation than the alternatives and with substantially fewer risks, uncertainties and social costs".

Elliott, which owns just over 3 per cent of Akzo Nobel, last week revealed it had won the support of five other shareholders to call an EGM to oust Akzo chairman Antony Burgmans.

PPG's latest offer was 90 euros per share, or about $26 billion.

Buechner's strategy that also includes new financial targets will be a tough sell in his battle against Pittsburgh-based PPG.

The Amsterdam-based group also reported net profit of 240 million euros ($257 million) in the period from January to March, relatively stable from a year earlier, but ahead of analysts' expectations.

Recommended:

  • Facebook murder suspect remains at large as police ask public for help

    Facebook murder suspect remains at large as police ask public for help

    This undated photo provided by the Cleveland Police shows Steve Stephens . "If you did it, you have to face your crime", she said. Facebook plans to work with developers this year to come up with more augmented reality games and other uses, Zuckerberg said.

    "Super-Earth" offers chance for life outside solar system

    Seven outside astronomers said the Milky Way is big enough for all the discoveries to be exciting, requiring more exploring. The new planet was discovered thanks to the MEarth-South telescope network devoted exclusively to seeking out exo-planets.
    American Express Company (AXP) Position Lowered by SOL Capital Management CO

    American Express Company (AXP) Position Lowered by SOL Capital Management CO

    SRB Corp now owns 2,038 shares of the company's stock valued at $144,000 after buying an additional 123 shares during the period. TRADEMARK VIOLATION NOTICE: This piece of content was first reported by The Cerbat Gem and is the property of of The Cerbat Gem.
  • EBay Inc. (EBAY) Performance Analysis

    EBay Inc. (EBAY) Performance Analysis

    Its platforms enable sellers around the world to organize and offer their inventory for sale, and buyers to find and purchase it. Following the sale, the senior vice president now directly owns 97,023 shares of the company's stock, valued at $3,276,466.71.
    MSU to host skiing national championships in 2020

    MSU to host skiing national championships in 2020

    That will be the fourth time Omaha has hosted in 15 years, which is the most of any host site in the history of the tournament. Kansas City and Sporting Park will now host the game through the 2021 season after hosting the event since the 2014 campaign.
    Pakistan's top court to rule in case that may oust premier

    Pakistan's top court to rule in case that may oust premier

    Panama Papers had published a leak of documents belonging to Mossack Fonseca, a Panama-based law firm on April 4, 2016. Shantanagoudar, asked the ASG to inform about the decision and posted the matter for hearing in July.
  • Captain Marvel film 'to be directed by indie film-makers Boden and Fleck'

    Captain Marvel film 'to be directed by indie film-makers Boden and Fleck'

    The team's output doesn't necessarily scream superhero film pedigree, but perhaps that's a good thing. The resulting adjustment imbues her with the superpowers of strength, energy project, and flight.

    Venezuela's Maduro seeks to expand armed civilian militias

    According to a survey by pollster Venebarometro, seven in 10 Venezuelans disapprove of Maduro, whose term does not end until 2019. Translation: The Revolutionary People have overflowed the streets of Venezuela to defend the Homeland, President Maduro wrote.
    Clippers even series vs Jazz

    Clippers even series vs Jazz

    Also, the host team Clipper fans and the people of Los Angeles can watch this Game 2 on PRIME TICKET, TNT and Listen to KEIB 1150. The team shot just 29 percent from the field in the opening carom, putting themselves in a hole they couldn't quite escape.
  • Tom Brady, And Other Patriots Skip 'Super Bowl' White House Visit

    Baseball Hall of Famer Rod Carew received a new heart and kidney from the late National Football League player Konrad Reuland. Also not addressed in the ceremony was the morning news of former Patriots player Aaron Hernandez's suicide.
    Violence spikes in Indian Kashmir after videos inflame tension

    Violence spikes in Indian Kashmir after videos inflame tension

    He tweeted, "Image of a stone-pelter tied in front of a jeep as a human shield, will 4 ever haunt the Indian army and the nation". A 17-year-old was allegedly killed by paramilitary officers during the 9 April by-election, one of the videos reportedly showed.

    Australia abolishes visa programme used largely by Indians

    But Immigration Minister Peter Dutton questioned Atlassian's role in the the local market. After this abolition, Australia will now only welcome skilled workers.


Popular

VP Mike Pence Warns North Korea: 'We Will Defeat Any Attack'
Wang's comments came amid a mounting war of words between Washington and Pyongyang. "I'm, like, a smart person", he said. Pence paused, collected his thoughts and then told me the story of when he was a 19-year-old traveler in Germany in 1978.

Trump declares Georgia Democrats are 'failing'
The GOP has controlled the district since 1979. "After successfully weathering $4.2 million in television smear attacks from D.C. Special elections will hold particular importance for Democrats this year, as Republicans now control both the House and Senate.

How major US stock market indexes fared on Wednesday
The stock sagged 5.6% after the company reported a bigger-than-expected decline in revenue of 2.6% in the quarter to March. Overall, profits of S&P 500 companies are estimated to have risen 10.8 per cent in the quarter - the best since 2011.

Quinnipiac chosen to host 2019 NCAA Women's Frozen Four
The 2019 regional will be held either March 29-30 or March 30-31, with the victor heading to the Frozen Four in Buffalo. The city bid for the hosting rights earlier this year. - 2018 and 2020 NCAA Men's and Women's Cross Country Regional .

Trump's inaugural donors doubled record set by Obama
Unlike Trump, the 2009 committee did not accept corporate contributions and limited individual donations to a maximum of $50,000. Billionaire Texan Kelcy Warren, whose company is building the Dakota Access Pipeline, gave the inaugural committee $250,000.