PPG International has confirmed that it may bid against Akzo Nobel for the Courtaulds chemicals group.
The US paints and glass giant said that it is co-operating with investment bank Donaldson, Lufkin & Jenrette and is in talks with Courtaulds, which has agreed a #1830m offer from Akzo of Holland.
If successful, PPG would keep the coatings businesses while the DLJ Merchant Banking Partners would acquire the remaining Courtaulds activities. These include the #300m polymers interests and fibres which Akzo intends to merge with its own activities and float as a separate company to its shareholders.
Courtaulds shares rose 9p to 473p compared with the 450p cash offered by Akzo. The Dutch company made no comment on the PPG move yesterday.
Turnover of Courtaulds shares amounted to nearly 10 million yesterday as it emerged that other chemical and industrial companies, including Du Pont of the US, may be interested in bidding.
Originally the Pittsburgh Plate Glass Company founded in1883, PPG has evolved into a multi-national corporation which last year achieved sales #4525m and profits of #438m.
Its main products are coatings, paints and glass for the automotive industry and it has more than 150 plants world-wide.
The DLJ involvement follows a number of leveraged buy-outs although analysts are less certain as to its intentions.
If PPG and DLJ do decide to make a hostile bid, they will probably wait until almost the first closing date for the Akzo bid on June 9 before declaring their hand.
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