A COATINGS firm has vowed to preserve a rival’s North-East expansion plans after tabling a fresh £21bn bid to end a protracted pursuit.

PPG Industries yesterday put forward a “last invitation” for paint maker AkzoNobel to reconsider its advances.

AkzoNobel, which has rejected two approaches, says it will review the “unsolicited and conditional proposal”.

The move adds a further twist to an already lengthy saga that last week saw AkzoNobel announce plans to sell or spin off its chemicals business and return net proceeds to shareholders left frustrated by its continued rebuttal of PPG’s advances.

AkzoNobel, which previously unveiled £10.7m plans to bolster operations at a Gateshead research hub and secure hundreds of jobs, denounced PPG’s earlier offers for undervaluing the firm and creating potential for job cuts.

However, the claims have failed to deter bosses at PPG, who say their latest bid is “vastly superior” to AkzoNobel’s proposals for reformation.

They also added the deal will not affect spending on North-East research and development, where Dulux maker 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.

Michael McGarry, chairman and chief executive at PPG, which is known for running a site at Shildon, County Durham, said the time had come for AkzoNobel chiefs to admit a takeover was the best possible course of action.

Writing to AkzoNobel counterpart Ton Büchner, as well as supervisory board chairman Antony Burgmans, Mr McGarry said: “We are extending this one last invitation to reconsider to your stance and to engage with us on creating extraordinary value and benefits for shareholders.

“The fit of a combination between our companies remains clear and compelling.

“Our revised proposal is vastly superior to AkzoNobel’s new standalone plan, which the capital markets have not recognised (with) any additional value.

“Like AkzoNobel, PPG is committed to investing to discover and develop new products and to that end, we will commit that we will not reduce current spending commitments related to Felling.

“We are convinced that together we will create a brighter future for all stakeholders.”

PPG claims the organisations “will be stronger together” and AkzoNobel has faced shareholder revolt from investors keen for talks to start.

However, AkzoNobel last week sought to apparently end the uncertainty, saying its new divisional strategy, complemented by proposals to pay investors £1.3bn in extra dividends, “will create substantial value for shareholders with significant less risks and uncertainties compared to alternatives”.

It added that by selling or listing its chemical division, which accounts for about a third of sales and profits, it could make £42m in savings.

AkzoNobel has also spent millions on a new paint making factory in Ashington, Northumberland, which is expected to create an initial 120 direct jobs.