June's AI-picked stock updates now live. See what's new in Tech Titans, up 28.5% year to date.Unlock Stocks

Rebuffed Elliott wants 'urgent' Akzo response on new CEO

Published 24/07/2017, 13:12
© Reuters. FILE PHOTO: Akzo Nobel's logo is seen in Amsterdam
AKZO
-
PPG
-

By Maiya Keidan and Bart H. Meijer

LONDON (Reuters) - Hedge fund firm Elliott Management on Monday asked the board of Dutch paintmaker Akzo Nobel (AS:AKZO) to urgently respond to its concerns about the nomination of a new chief executive.

Elliott, Akzo's largest shareholder with a 9.5 percent position, has been repeatedly rebuffed by the company after pushing for the board to engage with rival PPG Industries (N:PPG) over a takeover bid it rejected multiple times.

Paul Singer's activist fund called on Akzo to confirm the date of a general shareholder meeting to vote on the appointment of Thierry Vanlancker as the new chief executive and to confirm shareholders will be given the right to add resolutions to the next meeting.

Vanlancker, 52, stepped into the role on Wednesday after former CEO Tom Buecher quit suddenly for health reasons.

Elliott, which manages $33 billion (25.31 billion pounds) in assets, said it was making its questions public after Akzo Nobel refused to engage and after it cancelled a recent meeting with the U.S. activist at short notice.

The hedge fund is currently pursuing court action to oust Chairman Antony Burgmans, whose third term on the supervisory board ends in 2018, over the rejected PPG bid.

Elliott also called on Akzo Nobel to urgently clarify the views of the new CEO and the supervisory board on the separation of the special chemicals business and the credibility of Akzo's 2020 targets.

© Reuters. FILE PHOTO: Akzo Nobel's logo is seen in Amsterdam

An Akzo spokesman declined to comment when contacted by Reuters.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.