AMSTERDAM The chief executive of paint maker PPG Industries (PPG.N), which raised its takeover proposal for Dutch rival Akzo Nobel to about 26.9 billion euros ($28 billion) on Monday, said the deal would still add to earnings in the first year.
In an interview with Reuters, Michael McGarry said if Akzo Nobel's management and supervisory boards agreed to takeover talks, the companies might find additional ways to create value above the $750 million in synergies that PPG has identified from publicly available documents.
Akzo, which rejected two PPG proposals in March, said on Monday it was considering PPG's latest offer, which includes commitments to the company's employees and a break fee if the deal were to be blocked by regulators. [nL8N1HW2QJ]
"I think it's important for them to do the due diligence and to sit down and listen to us," McGarry said. "They have run out of excuses to throw on the table to say why they shouldn't."
McGarry said given the support from Akzo Nobel's shareholders for a deal, PPG intended to submit a formal offer for Akzo Nobel shares by June 1, regardless of whether its boards have agreed to talks by that time.
(Reporting by Toby Sterling and Greg Roumeliotis; editing by David Clarke)