LONDON (ShareCast) - (ShareCast News) - Dutch paintmaker Akzo Nobel announced on Wednesday the immediate resignation of its chief executive officer, Ton Buechner for health reasons in the face of an aggressive campaign launched by activist investor Elliot Management and with the threat of a takeover by PPG industries hanging over the firm.
The resignation was unexpected with market commentary pointing to the pressure he was under from some investors after Buechner and chairman Anthony Burgman refused to engage with PPG over its initial $29.5bn takeover offer as the reason for his exit.

Instead of a tie-up with PPG, Buechner and Burgman proposed selling the company's specialty chemicals arm and a April deadline was now looming on the horizon.

In the meantime, Elliot had taken its push for talks to court in the Netherlands, while PPG pulled its bid on 1 June stating that it was the best option at that time.

Dutch takeover law stipulated it must wait six months before making another move.

Buechner's successor, Thierry Vanlancker would now inherit the same pressure.

However, the company conveyed confidence in his abilities, citing his "extensive experience in the chemicals and coatings industry".

For his part, Buechner added: "Thierry Vanlancker is a great addition to the team and is well placed to take AkzoNobel forward, delivering long term value creation for all stakeholders."

Vanlancker's predecessor was most recently head of Akzo's Specialty Chemicals unit and Akzo and the company credited him with having put in place a solid operational and financial foundation, which enabled it to recently announce the creation of two focused high performing businesses- paints, coatings and speciality chemicals.

As of 1511 BST shares in Akzo were edging higher by 0.36% to €78.23.

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