AkzoNobel reports shareholder Elliott to financial authorities following calls to remove chairman

AkzoNobel reports shareholder Elliott to financial authorities following calls to remove chairman

AkzoNobel reports shareholder Elliott to financial authorities following calls to remove chairman

"AkzoNobel has shared this information with the Dutch Authority for the Financial Markets (AFM) and calls on Elliott Advisors and PPG to clarify their relationship and the history of the communications between the two companies", the company said in a statement.

"It is only through engagement that Akzo Nobel can determine if PPG is prepared to bid at a level that provides adequate consideration to shareholders".

A spokesperson for Akzo told Reuters that the company will respond to the investors' request within two weeks, as stipulated by Dutch law.

It said Dutch law requires it to consider the proposal for a meeting but that it will reject any agenda item that proposes the removal of the chairman.

In a response to the allegations, sent to TheStreet by an Elliott spokesperson, the group said that "as one of the top 20 shareholders of Akzo Nobel, Elliott has, as a matter of course, met and communicated with PPG".

Elliott has been trying to ramp up the pressure on Akzo to negotiate a potential sale to U.S. manufacturer PPG Industries, after Akzo rejected an improved €22.4bn (£19bn) cash and stock offer last month.

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"Akzo Nobel is sending a signal that it will use all means to avert the takeover", Theodoor Gilissen analyst Joost van Beek said by phone. Elliott added that it is "aware of its various regulatory obligations, including obligations related to handling price-sensitive, or potentially price-sensitive, information". Burgmans is viewed as an opponent to the deal but Elliott has pressed the company to engage with PPG.

Elliott said it and affiliates hold a stake in Akzo Nobel of more than 3 percent, and it's backed in calling for an EGM by investors holding more than 10 percent.

The Dutch company plans to release a new strategy on April 19 for spinning off its chemicals business to increase shareholder value.

PPG Chief Executive Michael McGarry said last week that the company isn't ruling out a sweetened offer or a hostile bid for Akzo.

It was not clear what rules, if any, the shareholder and PPG might have violated.

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