PITTSBURGH _ PPG has again upped its bid for Dutch coatings maker AkzoNobel saying its new offer of $28.8 billion is "one last invitation" for the companies to negotiate a merger that would create the largest paint company in the world.
Amsterdam-based Akzo has rebuffed two prior unsolicited offers from PPG saying they undervalued the Dutch company.
PPG's newest bid raises the price from 90 euros to 96.75 euros per share including a dividend.
Akzo's shares closed at 78.20 euros on Friday.
"We are extending this one last invitation to you and the AkzoNobel boards to reconsider your stance and to engage with us on creating extraordinary value and benefits for all of AkzoNobel's shareholders," PPG Chairman Michael McGarry said in a letter to Akzo's chairman and its chief executive.
While it made the revised bid public, PPG said it is not a formal offer to buy the company. It has until June 1 to launch a public takeover offer for Akzo.
Akzo, which has been under pressure from some shareholders to enter discussions with PPG, last week unveiled its own plan to raise its value, which included spinning off its chemicals business and paying more dividends.
In its new proposal, PPG said it would commit to a reverse break-up fee to demonstrate its confidence the deal would obtain antitrust approvals and said it has addressed details surrounding Akzo's concerns about employees, pensions and where combined operations would be based.
"Our revised proposal represents a second increase in price along with significant and highly-specific commitments that we are confident AkzoNobel's stakeholders will find compelling," McGarry said.
