PPG drops AkzoNobel bid

PPG Industries has withdrawn its $28.8 billion bid to purchase Dutch paint rival AkzoNobel. The bid represented a premium of 50% over AkzoNobel’s stock price in March, before the overture was announced. Many AkzoNobel shareholders, including activist investor Elliott Advisors, wanted AkzoNobel to negotiate, but the company refused. It instead rolled out a plan to spin off its chemicals business within the next year. Last week, PPG’s campaign suffered two fatal setbacks. The Dutch financial market authority wouldn’t extend PPG’s deadline to make a tender offer for AkzoNobel past June 1. Separately, a Dutch appeals court ruled against Elliott in its bid to unseat AkzoNobel chairperson Antony Burgmans. Elliott wanted the court to let shareholders vote on whether to remove Burgmans after AkzoNobel’s board refused to allow the vote.