Elliott in court bid over Akzo
The hedge fund seeks an extraordinary general meeting of shareholders in a bid to oust Akzo chairman Antony Burgmans
Amsterdam — Elliott Advisors, the hedge fund that has been pushing Dutch paint maker Akzo Nobel to enter takeover talks with US rival PPG Industries, has begun legal proceedings to try to oust Akzo chairman Antony Burgmans. Elliott said it had filed a suit with Amsterdam’s Enterprise Chamber, petitioning judges to order an extraordinary general meeting (EGM) of shareholders to debate the proposal. In an open letter, the fund said Akzo’s flat rejection of PPG’s third takeover proposal, worth €26.3bn, was "a flagrant breach of Akzo Nobel’s boards’ fiduciary duties and of Dutch corporate law, and … an arrogant dismissal of recognised principles of proper corporate governance". Akzo has said PPG’s bid is too low and lacks firm commitments to the company’s stakeholders including employees and environmental interests. The company’s boards prefer their own plan to avoid a PPG takeover by issuing extra dividends and selling or floating Akzo’s chemicals division, representing about a third o...
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