PPG Industries (NYSE:PPG) has made a revised offer for Akzo Nobel (OTCQX:AKZOY). This one amounts to €57.50 cash and 0.331 shares, compared with its previous bid, announced on March 8, of €54 in cash and 0.33 shares. This amounts to a fairly modest increase: at yesterday's prices, it is 4.2% higher than PPG's initial offer. Akzo's shares closed down 2.1% in today's trading, and as I write, PPG is down 1.5%.
It emerged on March 17 that Elliott Management, one of the larger and more aggressive activist investment firms, owns a stake in Akzo Nobel, which it has apparently raised to more than 3% (the Dutch reporting threshold) in the last few days. While Elliott seems to agree with Akzo Nobel management that even PPG's revised bid is too low, but it is urging Akzo Nobel to negotiate with PPG.
