AkzoNobel paints strategy to thwart US takeover bid

AFP, THE HAGUE: The world's leading paintmaker AkzoNobel Wednesday unveiled plans to shed its specialist chemicals division as it fends off a hostile US takeover bid, buoyed by stronger-than-expected first quarter profits.
"We will create two focused and high-performance businesses," chief executive Ton Buchner said, valuing the chemicals division at between eight and 12 billion euros ($8.5 billion to $12.8 billion).
"Both businesses have skills and capabilities to stand on their own and to deliver a strong cash generation in the future."
The Amsterdam-based group also reported net profit of 240 million euros ($257 million) in the period from January to March, relatively stable from a year earlier, but ahead of analysts' expectations.
Sales of such household brand names as Dulux and Trimetal were up 7.0 percent to 3.7 billion euros, the company said in a statement.
The move to spin off the chemicals division within 12 months either via a sale or a separate listing comes after AkzoNobel rejected two bids from US rival PPG last month -- one which would have valued the whole company at 22.4 billion euros.
The bids did not reflect the company's potential long-term value, and would "lead to uncertainty for the thousands of employees around the world," AkzoNobel said at the time.
AkzoNobel's paint-making business is seen as a broad barometer of underlying global economic activity.
But the company has been under pressure in recent weeks amid the increasingly hostile bid by the Pittsburg-based paints and coatings business PPG.

AkzoNobel paints strategy to thwart US takeover bid

AFP, THE HAGUE: The worlds leading paintmaker AkzoNobel Wednesday unveiled plans to shed its specialist chemicals division as it fends off a hostile US takeover bid, buoyed by stronger-than-expected first quarter profits. We will create two focused and high-performance businesses, chief executive Ton Buchner said, valuing the chemicals division at between eight and 12 billion euros ($8.5 billion to $12.8 billion). Both businesses have skills and capabilities to stand on their own and to deliver a strong cash generation in the future. The Amsterdam-based group also reported net profit of 240 million euros ($257 million) in the period from January to March, relatively stable from a year earlier, but ahead of analysts expectations. Sales of such household brand names as Dulux and Trimetal were up 7.0 percent to 3.7 billion euros, the company said in a statement. The move to spin off the chemicals division within 12 months either via a sale or a separate listing comes after AkzoNobel rejected two bids from US rival PPG last month -- one which would have valued the whole company at 22.4 billion euros. The bids did not reflect the companys potential long-term value, and would lead to uncertainty for the thousands of employees around the world, AkzoNobel said at the time. AkzoNobels paint-making business is seen as a broad barometer of underlying global economic activity. But the company has been under pressure in recent weeks amid the increasingly hostile bid by the Pittsburg-based paints and coatings business PPG.