A COATINGS firm expanding North-East operations has accused a rival of displaying “a lack of understanding” after snubbing a third takeover attempt.

AkzoNobel says PPG Industries’ £22.7bn bid would put thousands of jobs at risk and leave the business on a regressive path.

However, PPG, which runs a plant in Shildon, County Durham, says its offer is “vastly superior” to Gateshead-based AkzoNobel’s plans to revitalise operations, with bosses refusing to rule out if its advances will turn hostile.

The rejection adds another layer of intrigue to what has become a protracted affair, with both sides of the divide remaining steadfast on their position.

Dulux maker AkzoNobel, which previously unveiled £10.7m plans to bolster operations at a Gateshead research hub and secure hundreds of jobs, has faced investor revolt for its refusal to engage in talks with PPG and last month dismissed what it described as “irresponsible” calls from shareholder group Elliott Advisors to debate senior boss Antony Burgmans’ future over the issue.

Rather than enter into negotiations, the company previously announced plans to sell or spin off its chemicals business and return the “vast majority” of net proceeds to shareholders and also laid out proposals to pay £1.3bn in extra dividends in attempts to sweeten investors.

PPG has long maintained its offer is superior to AkzoNobel’s vision, and, speaking after the latest takeover rebuttal, Michael McGarry, chairman and chief executive, said its rival was “ignoring the best interests of stakeholders.”

Mr McGarry also said PPG’s offer will not affect spending on North-East research and development, where AkzoNobel aims to bring together more than 100 scientists at its existing base in Felling, Gateshead, to work on next generation products to protect steel and concrete structures from corrosion, abrasion and fire.

However, Ton Büchner, AkzoNobel chief executive, was unmoved, saying PPG’s proposal could affect jobs and existing contracts with customers and cause months of uncertainty.

He said: “It undervalues AkzoNobel, contains risks and uncertainties, makes no substantive commitments to stakeholders and demonstrates a lack of cultural understanding.

“By contrast, we have outlined a compelling strategy to accelerate growth and value creation, which we believe will deliver significant long-term value for shareholders and all other stakeholders.

“We will deliver this in a clear timeline, without the substantial level of risks and uncertainties attached to the alternative proposal.

“The creation of two high-performing businesses - paints and coatings and specialty chemicals - will lead to a step change in growth.”

But Mr McGarry cast doubt on the claims, saying AkzoNobel has displayed a total “lack of governance” over the issue, since it has never had any intention of engaging properly with PPG to understand its bid.

He added: “We are disappointed AkzoNobel has again refused to enter into negotiations, ignoring the best interest of its stakeholders.

“Our latest meeting lasted less than 90 minutes and the AkzoNobel chairs did not have the intent nor authority to negotiate, nor would they entertain any questions or discussion about their plan.

“Our proposal is vastly superior in shareholder value creation and provides more certainty to employees and pensioners than AkzoNobel’s plan.

“The failure to engage with us reflects a continued lack of proper governance.”