USA specialty chemicals supplier PPG Industries Inc. has renewed its bid for AkzoNobel NV, following the Dutch chemical company's announcement of restructuring plans earlier last week.
The company has come under pressure in recent weeks after already twice rejecting offers in the increasingly hostile takeover battle with the Pittsburg-based PPG.
"In accordance with its fiduciary duties and acting under the Dutch governance code the board of management and supervisory board of AkzoNobel will carefully review and consider this proposal", it said. Akzo shares jumped 6 percent to a record high of 82.86 euros by 1130 GMT.
The Pittsburgh-based suitor has bolstered its cash and share bid for the Dulux paint maker by 8% to 96.75 euro per share, with the potential tie-up now valued at 26.9 billion euro (£22.8 billion).
A spokesman for Elliott said the fund was examining PPG's latest proposal and could not immediately comment.
He said PPG believed the deal would add to its earnings from the first year and given the support from Akzo shareholders, the US firm would submit a formal offer to the Dutch financial markets regulator by June 1, regardless of what Akzo does.
The latest offer represents a premium of around 50% over AkzoNobel's share price back in March, before PPG's first bid was made public.
"Our revised proposal represents a second increase in price along with significant and highly-specific commitments that we are confident AkzoNobel's stakeholders will find compelling", Mr. McGarry said.
McGarry argued that "one of more notable risks" of AkzoNobel's new plan "is that it creates two smaller, unproven standalone companies with uncertain market valuations".
Both moves, if completed, would make Akzo a less attractive target for PPG, although the US company has said the primary reason for the takeover would be synergies of $750 million between the companies' paints and coatings businesses.