AkzoNobel lands in court as Dutch gov't considers foreign takeover curbs
May 23, 2017
The caretaker government of the Netherlands is considering a law that would give listed Dutch companies a one-year period of 'thinking time' during which they could reject any approach by a foreign buyer, per reports. The proposal comes as shareholders of Dutch paints business AkzoNobel (AEX: AKZA) are taking the company to court over the rejection of a €26.9 billion bid from US rival PPG Industries (NYSE: PPG) earlier this month.
Investors representing an 18% stake in AkzoNobel, led by Elliott Advisors, have asked the Amsterdam Enterprise Chamber to examine possible mismanagement by AkzoNobel's board and force an extraordinary general meeting to vote on dismissing chairman Antony Burgmans. A ruling in the case is expected after markets close on 29 May, per Reuters, leaving PPG just enough time to walk away for six months or submit a formal bid to Dutch regulators without the support of AkzoNobel's board by a 1 June deadline.