A COATINGS firm could walk away from a takeover after being denied extra time to make an offer.

PPG Industries has admitted it may end its interest in Gateshead-based AkzoNobel after a court ruled against extending a deadline to finalise an approach beyond tomorrow (Thursday, June 1).

The company had applied to the Dutch Authority for the Financial Markets (AFM) for more time to prepare a fresh offer for AkzoNobel, having already had three bids, the latter totalling £22.7bn, rebuffed by its rival.

AkzoNobel, which this week started £11m work to strengthen its North-East base, has long said PPG’s plans could cause job losses.

The Dulux maker has instead chosen to focus on plans to sell or spin-off its chemicals business in a move it says will return the “vast majority” of net proceeds to shareholders and laid out proposals to pay £1.3bn in extra dividends.

Referring to the court’s decision, a spokesman for PPG, which runs a plant in Shildon, County Durham, said: “We will continue to assess all options, including whether or not to file a preliminarily draft offer memorandum with the AFM by no later than June 1.”

PPG’s frustrations come after activist investor Elliott Advisors saw plans to remove AkzoNobel supervisory board chairman Antony Burgmans, who it believes has impeded talks with PPG, spurned by the Dutch Enterprise Chamber.

Central to AkzoNobel’s decision to ignore PPG’s overtures are plans to bring together more than 100 scientists at its existing base in Felling, Gateshead, who will work on next generation products to protect steel and concrete structures from corrosion, abrasion and fire.