Akzo Nobel Shareholder Elliott Hits Out Over CEO Appointment
July 24 2017 - 8:01AM
Dow Jones News
By Rory Gallivan
Akzo Nobel N.V. (AKZA.AE) shareholder Elliott Management Corp.
on Monday kept pressure on the Dutch paint and chemicals giant,
accusing it of failing to engage with Elliott over the appointment
of its new chief executive after the previous CEO stepped down
because of ill health.
The activist investor, which has a stake of around 9.5%, called
on Akzo to confirm when it would hold a meeting of shareholders to
vote on the appointment of the new CEO and to clarify whether it
planned to confirm its financial targets for 2020, which Elliot
said "are not considered credible by the market."
Akzo said last week that CEO Ton Buchner resigned for health
reasons but that the company remained on course to spin off its
chemicals business to appease shareholders after rejecting a $28
billion takeover bid from U.S. rival PPG Industries Inc.
His resignation came after a monthslong battle to fend off both
PPG's takeover attempt and an aggressive legal and public relations
campaign led by Elliott to try to push the company into sale
talks.
Thierry Vanlancker, the head of Akzo's chemicals business, was
appointed as the company's new chief executive.
A spokesman for Akzo said the company would not comment on the
specifics of the Elliott statement but would release a market
update on Tuesday.
Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
(END) Dow Jones Newswires
July 24, 2017 07:46 ET (11:46 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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