AkzoNobel rejects Elliott calls dismiss chairman

AkzoNobel rejects Elliott calls to dismiss chairman

6:28 AM, 13th April 2017
AkzoNobel logo

AMSTERDAM, NETHERLANDS: AkzoNobel NV has received a request to hold an extraordinary general meeting (EGM) to dismiss Antony Burgmans as chairman of the supervisory board. The request was received from a number of shareholders led by Elliott Advisors.

Elliott Advisors has stated it became a shareholder in AkzoNobel in December 2016.

The supervisory board strongly supports Burgmans in his role as chairman. His unique experience of international business and global transactions is crucial to the company. He has played an important role in overseeing and supporting management in the transformation of the company in recent years, contributing to its significantly improved performance.

The view of the supervisory board is that the removal of Burgmans would be irresponsible, disproportionate, damaging and not in the best interest of the company, its shareholders and other stakeholders. Therefore, the proposed agenda item to remove Burgmans will be rejected.

AkzoNobel became aware that Elliott Advisors intended to privately share potentially price sensitive information with PPG about its decision to request an EGM. AkzoNobel has shared this information with the Dutch Authority for the Financial Markets (AFM) and calls on Elliott Advisors and PPG to clarify their relationship and the history of the communications between the two companies.

The supervisory board also wishes to reiterate its position on other key matters:

AkzoNobel will hold an investor update event, where it will outline a new strategy and updated financial guidance, including plans for the creation of two focused businesses and enhanced long-term value creation for shareholders and all stakeholders

AkzoNobel believes that engaging with PPG on the basis of an unacceptable proposal carries the potential of significant downside for the company including its shareholders and other stakeholders

The latest proposal from PPG continues to significantly undervalue AkzoNobel and does not substantively address any of the concerns, risks and uncertainties AkzoNobel raised in its response to the first proposal

AkzoNobel and its boards have fulfilled their fiduciary duty to consider the interests of all stakeholders including shareholders in the evaluation and rejection of two unsolicited proposals from PPG and have done so consistently throughout this process

This request from Elliott Advisors does nothing to affect the fundamental inadequacies of PPG’s proposals or AkzoNobel’s current position

© Worldofchemicals News

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