United States firm PPG has increased its bid for Dulux owners AkzoNobel for the second time.
Akzo has said that it is studying PPG's latest proposal, which values the company at around 26.9 billion euros ($28.8 billion).
On Monday, Akzo confirmed receipt of the "third unsolicited" bid from PPG and said that it is reviewing the offer "in accordance with its fiduciary duties".
In an interview just after again raising the U.S. company's offer for AkzoNobel to €96.75 a share on Monday, McGarry told the Financieele Dagblad that AkzoNobel shareholders want and deserve answers to all their questions at Tuesday's shareholders' meeting.
Analysts from Morgan Stanley said it was noteworthy Akzo had not rejected the bid out of hand, and that PPG had made significant concessions - not only on the break fee but also on employment, pension plans, research and development spending and the location of production facilities.
Akzo Nobel shares jumped as much as 4.85% immediately following the improved bid before paring gains to around 4.4%, but still a record-high €81.60 each that extends their three-month gain to almost 30%.More news: Trump eyes changes to Obama's tax and Wall Street rules
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Elliott said: "There can be no assurance that a hostile bid - if one were to materialise - would include the same or improved protections and undertakings for AkzoNobel stakeholders".
"Elliott therefore believes that friendly discussions now are in the best interest of all", it said in a statement.
PPG's revised proposal represents an increase of 6.75 euros, or 8%, over our prior proposal on March 22 and 13.75 euros, or 17%, over original proposal on March 2.
"If they don't, PPG is very likely to take this directly to shareholders".
The move comes one day before Akzo, which has declined two previous overtures from PPG, is due to face a group of unhappy shareholders at its annual meeting.