U.S. paints and coatings maker PPG Industries has dropped its attempt to buy Dutch rival Akzo Nobel in a €26.3 billion deal, stung by repeated rejections from the company, legal defeats and hostility from Dutch politicians.
McGarry revealed that PPG had made a last-ditch effort to engage with Akzo late last week but that a letter had been met with silence.
The US fund was infuriated by the decision to reject PPG's offers.
PPG will not be making a fourth takeover offer for Dulux owner Akzo, the company said in a statement. United States coatings firm PPG announced today it was abandoning its bid to take over its Dutch rival, the world's leading paintmaker AkzoNobel, in the wake a bitter court battle.
PPG may not approach Akzo again during a six month cooling-off period.
PPG boss Michael McGarry said it had hoped Akzo's management would see the benefits of merging the two groups, but the Dutch group has been steadfast in rejecting PPG's advances.
Going directly to shareholders was destined to be rocky. The acquisition would have prevented Sherwin-Williams from grabbing PPG's position as the world's largest coatings maker with its pending $9.3bn purchase of Valspar.
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Akzo Nobel has held firm to its alternative plan to break into two companies focused on chemicals and coatings. An Amsterdam court on Monday blocked attempts by a group of shareholders, angered by AkzoNobel's refusal to talk, who sought to oust the company's supervisory board chairman.
"We believe this will lead to a step change in growth and long-term value creation for our shareholders and all other stakeholders".
A Dutch court on May 29 rejected a petition by Elliott, billionaire Paul Singer's NY hedge fund, to force a shareholder vote on firing Burgmans.
The fund claimed he was in "flagrant breach" of his duties to investors for rejecting PPG's offers.
Under Dutch securities rules, PPG can not make another offer for Akzo for six months. The U.S. company failed this week win an extension of that deadline.
Akzo Nobel shares traded down 1.2 per cent at €73.63 after PPG's announcement - far below the figure of around €95 per share that PPG's final cash and share proposal in April represented.
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