LONDON (ShareCast) - (ShareCast News) - Dulux owner AkzoNobel has received a request from shareholders led by activist investor Elliott Advisors to hold an extraordinary general meeting to dismiss chairman Antony Burgmans.
The company said on Wednesday that its Supervisory Board strongly supports Burgmans in his role as chairman.

"His unique experience of international business and global transactions is crucial to the company. He has played an important role in overseeing and supporting management in the transformation of the company in recent years, contributing to its significantly improved performance.

"The view of the Supervisory Board is that the removal of Mr. Burgmans would be irresponsible, disproportionate, damaging and not in the best interest of the Company, its shareholders and other stakeholders. Therefore the proposed agenda item to remove Mr. Burgmans will be rejected."

Elliott had been threatening to take this action for several weeks.

The private investment firm and Akzo have been at odds since Akzo - in which Elliott owns a 3% stake - rejected two takeover bids from US chemicals manufacturer PPG Industries, saying they undervalued the company.

Elliott said it had not found the reasons proffered by Akzo's board for failing to engage in discussions with PPG compelling.

"It is only through engagement that Akzo Nobel can determine if PPG is prepared to bid at a level that provides adequate consideration to shareholders."

Elliott added that Akzo had not adequately consulted with shareholders before rejecting both bids, saying that had it done so, it would most likely have found that most shareholders want the boards to engage with PPG.

AkzoNobel said on Wednesday that it has reported Elliott to the Dutch financial regulators after it became aware that it intended to privately share potentially price sensitive information with PPG about its decision to request an EGM.

"AkzoNobel has shared this information with the Dutch Authority for the Financial Markets (AFM) and calls on Elliott Advisors and PPG to clarify their relationship and the history of the communications between the two companies."

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