Elliott wants answers on Akzo Nobel's new CEO

Activist investor Elliott Advisors, Akzo Nobel's largest shareholders, called on the Dulux maker on Monday to confirm the date of a general meeting to vote on the appointment of the nominated chief executive, Thierry Vanlacker.

Vanlacker took on the role last week after former CEO Tom Buecher stepped down for health reasons.

Elliott also urged Akzo to confirm that shareholders will be given the chance to add resolutions to the agenda of the next EGM.

"Elliott notes that the current status of the nominated CEO is untenable and raises significant legal and reputational risks for the company. Any attempts by Akzo Nobel to circumvent the requirements of its constitutive documents (e.g., by delaying the vote on the nominated CEO's appointment; by preventing shareholders from adding items to the EGM agenda, etc.) would exacerbate the crisis of confidence between Akzo Nobel and its shareholders, further impairing the company's relationship with its shareholders, which the Enterprise Chamber explicitly instructed Akzo Nobel to repair."

The investor also said it wants the company to clarify in its earnings statement on Tuesday whether it still plans to separate the specialty chemicals business as previously announced and whether it intends to retain its 2020 targets, which it said are not considered credible by the market. In addition, Elliott wants to know whether the company will tie the management team's pay to the targets.

Finally, the investor said it wanted clarity on what steps the nominated CEO proposes to take in order to achieve the 2020 targets and to close the value gap of around €5bn between Akzo's current market capitalisation and PPG Industries' third proposal.