PITTSBURGH _ AkzoNobel, the Dutch paints and chemicals business PPG is trying to buy, said Wednesday that it would sell or list its chemicals unit to raise value for shareholders and avoid a takeover.
The move was expected and comes after Akzo in recent weeks rejected two offers by Pittsburgh-based PPG saying they undervalued the company.
PPG's latest offer was 90 euros per share, or about $26 billion.
At an investor conference in London, Ton Buechner, Akzo's chief executive, said the chemicals segment _ which accounts for about one-third of Akzo's revenues _ would be sold or listed in an offering within 12 months and proceeds would be returned to shareholders.
Akzo's plan also calls for shareholders to receive a total 1.6 billion euros ($1.7 billion) in dividends this year including a special dividend totaling $1 billion euros in November.
PPG said Akzo shareholders would see far greater value from an acquisition.
Akzo's shares were trading around 78 euros on Wednesday, still far below PPG's latest offer.
In a statement issued after Akzo disclosed its strategy, PPG said it "listened carefully to AkzoNobel's new strategic plan and we continue to believe in the merits of combining the two companies."
"PPG believes that AkzoNobel's new strategic plan will be more risky and create more uncertainty for AkzoNobel stakeholders including employees and pensioners, as AkzoNobel's revised strategy would create two smaller, unproven companies and result in additional restructuring."
Analysts have valued Akzo's chemicals unit at about 8 billion euros ($8.6 billion).
Shareholders have been pressuring Akzo to negotiate a deal with PPG and have requested a special meeting to oust its chairman, Antony Burgmans.
Buechner said the company had no updates on a possible meeting.
