Akzo Nobel Strikes Agreement With Activist Investor Elliott After Dispute
August 16 2017 - 2:10AM
Dow Jones News
By Rory Gallivan
Akzo Nobel NV on Wednesday said it has reached an agreement with
Elliott Management Corp., following a monthslong standoff during
which the activist investor called for changes at the Dutch
chemicals company after a failed $27.6 billion bid from PPG
Industries Inc.
Akzo said the agreement would "normalize the relationship"
between the company and its shareholders and suspend all litigation
for at least three months. Elliott will also support the
appointment of Thierry Vanlancker, who Akzo recently appointed as
chief executive, to the board, Akzo said.
It also includes alignment on the Akzo strategy to spin off its
specialty-chemicals business.
The deal follows a monthslong dispute between Elliott and Akzo.
As one of Akzo's largest investors, Elliott mounted a bold
public-relations and legal campaign to try to force the
Amsterdam-based company into unwanted sale talks with PPG.
Elliott argued that shareholders had lost confidence in Akzo's
leadership after it rejected calls from Elliott and several other
large shareholders for the company to hold a vote on entering into
sale talks.
Last week, Elliott lost its latest legal challenge to remove
Akzo Chairman Antony Burgmans.
Write to Rory Gallivan at rory.gallivan@wsj.com
(END) Dow Jones Newswires
August 16, 2017 02:55 ET (06:55 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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