PPG Industries (PPG) - Get Report  increased its offer for Akzo Nobel (AKZOY)  Wednesday, after the Dutch paint maker rejected its second bid earlier in the trading session.

Pittsburgh-based PPG said it will pay €90 per share for the chemicals group, from the €88.72 offer made on Monday. The new offer is a 40% premium to the share price on March 8, a day before the first bid was made.

Wednesday's deal is comprised of cash of €57.50 and 0.331 share of PPG common stock, the company said, and represents an increase of €7.00 per ordinary share from PPG's initial offer. Including the assumption of net debt and minority interests, the proposed transaction is valued at approximately €24.5 billion ($26.3 billion).

"We believe the revised proposal presents an opportunity for AkzoNobel's shareholders to realize extraordinary value, by any measure, for their shares in AkzoNobel," said CEO Michael McGarry. "It provides them with a premium valuation and the opportunity to receive substantial and immediate cash consideration and participate in the success of the enterprise through ownership of shares in the combined company."

Akzo Nobel shares were marked 2.34% lower at €74.81 each in midday Amsterdam trading, valuing the group at just over €18.86 billion. The stock hit an intra-day record of €79 each Tuesday and has gained around 18% since PPG's first approach on March 9.

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PPG shares closed at $104.48 on Tuesday in New York and were trading 0.5% higher in premarket trading on Wednesday.

Earlier Wednesday, Akzo said the second bid of €88.72 per share consists of €56.22 in cash and 0.331 PPG shares and was put to the group on Monday and values it at €22.38 billion ($24.1 billion) but does not "reflect the current and future value of AkzoNobel" and also "neglects to address the significant uncertainties and risks for shareholders and other stakeholders".

Akzo also said the revised offer fails to reflect the value creating opportunities of the new strategic plan focus for both the Specialty Chemicals and the Paints and Coatings businesses.

"A combination of PPG and AkzoNobel would result in enhanced financial growth prospects for the combined company in the coming years, which will also accrue to the benefit of all stakeholders of the combined business," McGarry said. "PPG has continued to carefully consider the interests of all AkzoNobel stakeholders, including shareholders, employees, customers and the communities it serves."

The BBC also reported Tuesday that regional Dutch politicians have expressed concern with the takeover plans, citing a joint statement from four provincial governors that it would put up to 5,000 jobs at risk.

The new proposal "would have result in a large number of substantial divestitures due to the major geographical and segment overlap of both companies across Decorative Paints and Performance Coatings, bringing into question value leakage," AkzoNobel said.