Akzo Nobel NV (AKZOY) has reached a standstill agreement with activist investor Elliott Management, the Dutch paintmaker said Wednesday, suspending litigation for at least three months.

Akzo Nobel shares gained 0.95% in the first minutes of trading in Amsterdam, changing hands at €77.30.

Akzo Nobel said that following recent "constructive dialogue" with the activist investor it reached an agreement to fully separate its Specialty Chemicals unit. Elliott will support the appointment of new CEO Thierry Vanlancker as a member of the management board at the upcoming extraordinary meeting on Sept. 8.

The paid have been at odds since Akzo Nobel rejected a €26 billion takeover bid from PPG Industries PPG earlier this year. Elliott is the company's biggest shareholder with a 9.5% stake.

The investor in late July petitioned the court to require Akzo Nobel to schedule an extraordinary meeting with the purpose of having shareholders vote on removing chairman Antony Burgmans immediately, after Burgmans said he planned to resign in April at the end of his term. However, a Dutch court denied the claim.

AkzoNobel and Elliott agreed Tuesday, subject to the terms of a standstill agreement, to seek to suspend all ongoing litigation for at least three months.

Elliott will also support the appointment of two new members - Sue Clark and Patrick Thomas -- to the Supervisory Board.

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