Akzo Nobel to Reveal Plans to Split Business April 19

By Ian Walker

Akzo Nobel N.V. (AKZA.AE), the Dutch paints and speciality chemicals firm fighting off a $24 billion takeover approach from U.S. peer PPG Industries Inc. (PPG), said Tuesday it will outline its plans to split the business at an investor update on April 19.

Akzo, which previously announced that it would separate its speciality chemicals business, said it will also provide updated financial guidance and growth plans, demonstrating the benefits of two focused businesses.

"Our new strategy will further unlock the value within the company, including the creation of two focused businesses," Chief Executive Ton Buchner said.

"We are best placed to deliver these plans ourselves, building on the existing momentum we have within the company. We look forward to sharing more details on our vision of the future for AkzoNobel," he added.

Just last week Akzo rejected a second, sweetened takeover offer by PPG of 88.72 euros a share, up from the earlier offer of EUR83.

Since then at least two of its shareholders--Causeway Capital Management LLC U.S. activist investor Elliott Management Corp--have urged the company to start talks with PPG.

Elliott owns a 3% stake in Akzo, while Causeway is Akzo's largest shareholder with a stake of around 6.8%.

-Write to Ian Walker at [e-mail]; @IanWalk40289749

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(END) Dow Jones Newswires

March 28, 2017 02:46 ET (06:46 GMT)

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