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Elliott Advisors makes fresh legal move against Akzo Nobel’s chairman

Posted by: Admin | Posted on: July 7th, 2017 | 0 Comments

AMSTERDAM Hedge fund Elliott Advisors said on Friday it has filed a second lawsuit seeking a general meeting of Akzo Nobel shareholders to vote on dismissing Chairman Antony Burgmans over his handling of a 26.3 billion-euro ($30 billion) takeover proposal from U.S. group PPG Industries.

In a preliminary ruling in May Amsterdam’s Enterprise Chamber rejected a request from shareholders representing 18 percent of Akzo’s shares to call an extraordinary meeting to discuss Burgmans’ dismissal, saying it was an attempt to control the company’s strategic direction.. That case is continuing.

Elliott said it had started a new action at a different venue, the Interim Relief Court, given that the Enterprise Chamber case is expected to take months, with the next hearing scheduled for September 20.

Elliott, which is now Akzo’s largest shareholder, said it had lost all confidence in Burgmans and is worried the preliminary ruling undermines Dutch corporate governance rule.

“If shareholders are not able to regulate the conduct of Akzo Nobel’s boards, who can?” the firm said in a statement.

Faced with opposition from Akzo’s boards, PPG dropped its attempt to buy Akzo on June 1 and under Dutch securities law cannot approach the company again for at least six months.

(Reporting by Toby Sterling; Editing by Greg Mahlich)

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