AMSTERDAM May 9 Elliot Advisors, the hedge fund
that has been pushing Dutch paint maker Akzo Nobel to enter
takeover talks with U.S. peer PPG Industries, said on Tuesday it
had launched legal action in an attempt to oust Akzo chairman
In a letter, the fund said Akzo's rejection of PPG's third
takeover proposal, worth 26.3 billion euros ($28.73 billion),
was "a flagrant breach of Akzo Nobel's Boards' fiduciary duties
and of Dutch corporate law, and...an arrogant dismissal of
recognised principles of proper corporate governance."
Elliott said it had filed a suit with Amsterdam's Enterprise
Chamber petitioning a judge to order an extraordinary meeting of
shareholders to debate Burgman's dismissal.
Under Dutch law, shareholders representing a 10 percent
stake have the right to ask the company to call an extraordinary
meeting. Elliott, with a 3.25 percent stake, had earlier
assembled a group of institutional investors meeting the
threshold and requested Akzo call such a meeting, but the
company declined, saying it supports Burgmans and the EGM would
not be in the company's best interests.
($1 = 0.9153 euros)
(Reporting by Toby Sterling; Editing by Miral Fahmy)