AMSTERDAM (AP) — Industrial paints and chemicals company AkzoNobel has rejected an unsolicited takeover bid from U.S. company PPG Industries worth 21 billion euros ($22 billion).
The Dutch company said Thursday that the offer undervalues it and that the terms of the deal are problematic as they would include high debt. It adds that the deal would threaten thousands of jobs and be detrimental to customers.
The offer, however, spurred the company to reassess its business model. It said it is looking into the possible sale or independent listing of its specialty chemicals business as a way to unlock value for shareholders.
"Our decision today was brought forward due to recent events," said Ton Buchner, CEO of AkzoNobel. "The unsolicited proposal we received from PPG substantially undervalues our company and contains serious risks and uncertainties. The proposal is not in the interest of AkzoNobel's stakeholders, including its shareholders, customers and employees, and we have unanimously rejected it."
Shares in AkzoNobel jumped 14 percent to 73.50 euros in Amsterdam.
The offer from PPG was for 54 euros and 0.3 PPG shares for every share in AkzoNobel, corresponding to 83 euros per share as of Feb. 28.