Trian Partners Activist Presentation Deck slide image

Trian Partners Activist Presentation Deck

Management's Decision to Attempt a Hostile Takeover Was Flawed On March 8, 2017, PPG made an unsolicited offer to acquire Akzo Nobel (“Akzo”) for €83/share in cash Over the next 3 months, PPG engaged in a series of aggressive takeover attempts that included two formal bid increases, with a public commitment to increase the bid a third time if Akzo was willing to engage Throughout this period, we believe management demonstrated lapses in judgment: ■ I Management underestimated Dutch corporate governance defense mechanisms designed to protect against hostile takeovers (Stichting) Management acted without regard to traditional merger / negotiation decorum After reporting a solid first quarter in April 2017, PPG reported a significant top-line miss in Q2, suggesting that management was completely distracted by the Akzo takeover attempts $115.00 $113.00 $111.00 $109.00 $107.00 $105.00 $103.00 $101.00 $99.00 3/1/2017 PPG Share Price: March 1-August 1, 2017 PPG issues statement confirming Akzo Board will not engage in talks Akzo rejects initial proposal Source: Company press releases, news articles. Increased bid to €90 / share PPG confirms unsolicited bid of €83 / share for Akzo 4/1/2017 Increased bid to €96.75 / share 5/1/2017 6/1/2017 PPG withdrew its bid; stock increased ~3% 7/1/2017 Q2 earnings miss -6% drop 8/1/2017 - 13 -
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