Akzo had proposed a plan that would separate its chemical business and pay shareholders $1.7 billion in extra dividends this year instead of accepting PPG's $26.4 billion takeover bid.
However, PPG countered by saying that its proposal would provide shareholders with an immediate cash payout that far exceeds Akzo's proposal.
"This strategy will create substantial value for shareholders with significantly less risks and uncertainties compared to alternatives," said Akzo Chief Executive Ton Buechner.
(What will move markets this quarter and how should investors position themselves ahead of time? Jim Cramer sat down with four of TheStreet's top columnists recently to get their views. Click here to listen to his latest Trading Strategies roundtable with them and read their advice for stocks, bonds, forex and gold.)