Akzo shareholders and analysts have called for the Dutch company to enter discussions with PPG.
But Burgmans said in an interview with De Telegraaf newspaper that the proposal was “just a poor offer” that “fundamentally undervalues our company and, what’s more, doesn’t address any of our other concerns.”
Akzo has said a merger would be bad for its employees and would likely face antitrust concerns. Burgmans also said that the fact PPG’s proposal is partly in shares - the offer is worth 90.16 euros at PPG’s current share price - makes it unattractive.
PPG has said that job losses would be minimal and antitrust concerns are manageable.
Akzo Nobel shares closed at 77.73 euros on Friday in Amsterdam, suggesting investors have significant doubts about whether PPG’s pursuit of Akzo will ultimately be successful.
Akzo has said it prefers to remain independent and has a plan to spin off its chemicals division, representing about a third of sales and profits, which it will detail in a presentation of its independent business plan on April 19.
Analysts say it is not realistic that Akzo can achieve a value of 90 euros per share as an independent company for many years, even after a carve-out of the chemicals business.
“Just listen to our plan on April 19” Burgmans told the newspaper.
(This version of the story corrects spelling of Burgmans’ first name)
Reporting by Toby Sterling; Editing by Greg Mahlich and David Evans