PPG CEO Michael McGarry met with officials at the Netherlands' Economy Ministry, a source told TheStreet, and will have meetings with stakeholders later Friday as part of a broader lobbying effort for the Pittsburgh-based group's $26.3 billion takevoer bid.
Akzo shares were marked just over 1% higher in Amsterdam and changing hands at €78.82 each by mid-day in Europe, after having hit another all-time high of €79.29 earlier in the session. The current share prices values Akzo Nobel at around €19.863 billion ($21.45 billion).
Friday's moves follow a series of pressures placed on Akzo CEO Ton Buchner to engage with McGarry, including public criticism from one its largest shareholders, Elliot Management, which owns 3.25% of the equity interest in Akzo Nobel via its U.K. division, according to Dutch Authority for the Financial Markets (AFM) data.
"This would be an ideal opportunity for Mr. Buchner to explain the specific elements of shareholder and stakeholder value that he views as prerequisites for a friendly transaction, if any, between PPG and Akzo Nobel," Elliot said in a statement Thursday emailed to TheStreet. "The fact that Mr. Buchner has so far failed to take this opportunity to meet and engage with PPG is hard to reconcile with his fiduciary duties."
"Elliott further understands from its own conversations with shareholders, recently published Sanford Bernstein research, and the work of Elliott's own proxy solicitation advisor, that Akzo Nobel's shareholders advocate engagement by an overwhelming margin," the firm said. "Mr. Buchner claims to be talking to shareholders. But he is clearly not listening to shareholders."
Earlier this week, Akzo Nobel rejected a second takeover approach that PPG says values the group at $26.3 billion.
Akzo calculated the revised bid on a dividend-adjusted basis of €88.72 per share (€56.22 in cash and 0.331 PPG shares) and said it 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.
PPG calculated the revised bid without adjusting for a 2017 dividend (€57.5 in cash and 0.331 PPG shares), with a source telling TheStreet that this is a closer representation of the ultimate value of the offer.