UPDATE 1-AkzoNobel rejects takeover offer from Nippon Paint, Sherwin-Williams

The Sherwin-Williams

The Sherwin-Williams

SHW

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Adds details on share price and the offer in paragraphs 3 and 4.

May 27 (Reuters) - Dulux paint maker AkzoNobel AKZO.AS has rejected a joint cash takeover offer of €73 ($85) per share from rivals Nippon Paint 4612.T and Sherwin-Williams SHW.N, the Dutch company said on Wednesday.

The company said the non-binding proposal undervalued its business and lacked deal certainty, adding that its board continued to recommend the planned merger with Axalta.

The offer price represents a premium of 39% to AkzoNobel's current share price. The stock was valued at €52.52 per share at Tuesday's close.

Under the proposal, Nippon Paint would have acquired AkzoNobel and retained its decorative paints and industrial coatings businesses, while selling its automotive, marine and powder coatings divisions to Sherwin-Williams.

AkzoNobel shares were halted at Wednesday's open.

($1 = 0.8593 euros)


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