Amsterdam: Akzo Nobel NV’s court victory against activist shareholder Elliott Management Corp has strengthened the Dutch paintmaker’s hand in resisting a takeover approach from suitor PPG Industries Inc and put pressure on the US rival to take its offer directly to investors.
The Commercial Court of the Netherlands ruled late Monday that Akzo Nobel is under no obligation to honour demands from shareholders led by the New York-based fund for a vote on removing chairman Antony Burgmans, seen as an obstacle to negotiations. Judge Gijs Makkink said the company didn’t have to involve investors in decisions regarding the unwanted bids from PPG and was within its rights to reject talks.
