- PPG Industries (NYSE:PPG) CEO Michael McGarry says making a hostile bid is an option after Akzo Nobel (OTCQX:AKZOF, OTCQX:AKZOY) rejected its sweetened $24.2B takeover offer earlier this week.
- “We are not taking any options off the table,” the CEO told Bloomberg in an interview when asked whether a hostile bid could be ruled out, although the company is most interested in a "collaborative discussion.”
- Meanwhile, Causeway Capital Management, Akzo's top shareholder with a ~6.8% stake, has told the company's board that while PPG’s latest offer was inadequate, it was high enough to begin negotiations.
- Elliott Management yesterday threatened to use corporate rules unique to Akzo’s structure to call a special shareholders meeting in a bid to force Akzo’s board to talk with PPG; Elliott, which owns 3% of Akzo, said it would need 10% shareholder support, and Causeway’s support would help it get there.