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Survey shows 75% chance PPG walks away from Akzo Nobel

Published 05/11/2017, 11:38 AM
© Reuters.  Survey shows 75% chance PPG walks away from Akzo Nobel
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  • A Bloomberg survey of 24 M&A/event driven desks, analysts, fund managers and brokers predicts a ~75% chance that PPG Industries (PPG -1.1%) will walk away from its attempt to buy Akzo Nobel (OTCQX:AKZOF, [[AKZOY]).
  • Louis Capital risk-arbitrage analyst Ben Kelly says PPG tends to be extremely disciplined and that upping the ante for Akzo would just be bidding against themselves; North Square (NYSE:SQ) Blue Oak's Mario Russo says PPG could wait for the specialty chemicals business spinoff and for the market to recognize its value, which could take up to two years.
  • CEO Michael McGarry said yesterday that PPG was considering whether to drop its pursuit of Akzo, suggesting for the first time that the company may end its attempts at a takeover; June 1 is deadline under Dutch law for PPG to make a tender offer to Akzo shareholders.
  • Source: Bloomberg First Word
  • Now read: Versum Materials Post Spin-Off


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