Dulux owner AkzoNobel rejects new takeover bid from US rival
Dulux paint maker AkzoNobel has rebuffed a second takeover tilt from US rival PPG Industries, claiming the approach "substantially undervalues" the firm.
The Dutch manufacturing giant has rejected a new non-binding proposal worth 88.72 euros (£76.75) per share in both cash and shares.
It said PPG's offer failed to "reflect the current and future value" of the firm and did not "address significant uncertainties and risks" for shareholders and stakeholders.
It comes after AkzoNobel announced plans last month to build a 12.6 million euro (£10.7 million) innovation hub near Gateshead, safeguarding 270 jobs.
The firm is also looking to launch a 110 million euro (£93.7 million) Dulux paint factory in Ashington, Northumberland.
Chief executive Ton Buchner said: "This proposal significantly fails to recognise the value of AkzoNobel.
"Our boards do not believe it is in the best interest of AkzoNobel's stakeholders, including our shareholders, customers and employees. That is why we have rejected it unanimously.
"We are convinced that AkzoNobel is best placed to unlock the value within our company ourselves."
The company also warned that a tie-up would trigger "significant job cuts" and create uncertainty for thousands of staff across the globe.
Mr Buchner added: "We are executing our plan, including the creation of two focused businesses and new cost structure, and believe this gives us a strong platform for continued profitability and long-term value creation for all our stakeholders with substantially less execution risks."
AkzoNobel employs 46,000 people in 80 countries and recorded total revenues of 14.2 billion euros (£12.2 billion) last year.
It employs 3,000 staff across the UK and has its British headquarters and global decorative paints research and development centre in Slough, Berkshire.