(Updates with details, background)
AMSTERDAM, June 9 Hedge fund Elliott Advisors
has become Dutch paint maker Akzo Nobel's largest
shareholder by increasing its stake to at least 5 percent,
according to a filing published by Dutch regulators on Friday.
Elliott's move follows a decision last week by U.S. firm PPG
Industries to drop its attempts to buy Akzo for at least
A spokesman for Elliott declined to comment.
Under Dutch market rules, investors must report their
holdings when they pass certain thresholds. Elliott could in
theory own anywhere between 5 percent and 10 percent of Akzo's
outstanding share capital.
Elliott led a group of shareholders dissatisfied with Akzo's
reluctance to enter talks with PPG over a 26.3 billion euro
($29.44 billion) buyout proposal, which represented a 50 percent
premium to Akzo's share price in March before the approach.
With support from other institutional investors representing
18 percent of Akzo's shareholder base, Elliott launched a court
case in Amsterdam seeking an investigation into alleged
mismanagement at Akzo and an extraordinary shareholder meeting
to discuss the dismissal of the company's chairman, Antony
Judges declined Elliott's request for such immediate
remedies on May 29, but ordered the company to make attempts to
repair its relationship with shareholders.
It is not clear whether Elliott intends to pursue the case
The hedge fund has previously said it began building a stake
in Akzo in late 2016, seeing the owner of brands including Dulux
paint as undervalued and underperforming.
($1 = 0.8934 euros)
(Reporting by Toby Sterling; editing by David Clarke/Keith