The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Jennifer Johnson

LONDON, May 27 (Reuters Breakingviews) - Dulux owner AkzoNobel rejected a €12.5 bln proposal from Nippon Paint and Sherwin-Williams. It reckons a recently agreed deal with US coatings maker Axalta makes more financial sense. A 20% stock surge for the Dutch group suggests otherwise, giving the interlopers cause for hope.

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CONTEXT NEWS

AkzoNobel, the maker of Dulux paint, on May 27 said it had rejected a joint cash takeover offer of €73 per share from rivals Nippon Paint and Sherwin-Williams.

The offer represented a premium of 39% to AkzoNobel’s closing share price of €52.52 on May 26.

The Dutch group said the proposal undervalued its business, and that its board continued to recommend the planned merger with Axalta, which is expected to close in late 2026 or early 2027.

AkzoNobel's shares were trading at €63.14 by 1442 GMT on May 27, which was 21% higher than on the previous day.