AkzoNobel and investor Elliott Advisors agree 'standstill' deal in Dulux feud
Dulux owner AkzoNobel has reached a truce with activist investor Elliott Advisors following a long- running dispute over the way the paint maker is run.
The Dutch firm said that, following recent talks, it has reached a "standstill" agreement with Elliott which will see a suspension of "all ongoing litigation for at least three months".
It comes after months of bitter feuding sparked by Akzo's rejection of a multibillion-pound takeover bid by US rival PPG Industries earlier this year.
Akzo's refusal to entertain talks with PPG infuriated Elliott, which had been pushing for a deal.
Elliott even went as far as filing a joint petition to the Dutch Interim Relief Court in the hope of ousting chairman Antony Burgmans, who later announced he will step down in 2018.
Akzo said Elliott has also agreed to support the appointment of Thierry Vanlancker, who is set to replace Tom Buchner as chief executive after he resigned suddenly for health reasons.
Furthermore, the activist investor is backing two new nominations to Akzo's supervisory board - Sue Clark and Patrick Thomas.
Gordon Singer, chief executive of Elliott Advisors, said: "Elliott is pleased to have entered into today's standstill agreement with AkzoNobel.
"We believe AkzoNobel will benefit from the addition of the supervisory board nominees.
"Today's agreement marks an important next step in positioning AkzoNobel for success and enabling the company to deliver compelling value to all its stakeholders.
"As shareholders, we look forward to building upon the recent constructive dialogue with the company."