AkzoNobel Investor Makes Bid to Remove Burgmans
May 12, 2017—An activist investor in AkzoNobel is making a legal bid to force the removal of the Dulux paint owner's chairman, Antony Burgmans, according to a BBC report.
AkzoNobel shareholder Elliott Advisors said Burgmans should be ousted because of the Dutch firm's refusal to enter takeover talks with PPG Industries. In a petition filed with the Dutch Enterprise Chamber, Elliott said Burgmans had not discharged his duties.
AkzoNobel has rejected three offers from PPG, but some shareholders—including Elliott—back the bid. Burgmans and chief executive Ton Buechner say the bid undervalues AkzoNobel.
Elliott, which holds a 3.25 percent stake in AkzoNobel, had teamed up with other like-minded investors to request a meeting to vote on a proposal to remove Burgmans. However, the company responded by reporting Elliott and PPG to Dutch regulators for possibly sharing potentially "sensitive" information with PPG regarding support for the meeting. Now Elliott is seeking to "enforce the rights" of shareholders to hold the meeting.
AkzoNobel has said that the removal of Burgmans would be "irresponsible, disproportionate, damaging and not in the best interest of the company, its shareholders and other stakeholders."