The financial press is reporting that global coatings giant PPG is considering a new bid after its approach to buy rival group AkzoNobel for $22 billion was rejected last week.

AkzoNobel directors quickly rejected the unsolicited bid claiming the offer substantially undervalued the company and its long-term prospects.

The share prices of both companies has risen sharply since the news of the bid broke, with the AkzoNobel price moving to above the PPG valuation. This can often mean that the markets expect a second bid to be made, however, PPG has yet to make a decision on the issue.

Meanwhile several major AkzoNobel shareholders have encouraged management to engage with PPG in constructive discussions and for PPG’s management to talk with Akzo shareholders to allow them to assess the merits of the proposals.

An added obstacle to a successful bid is thought to be option from Dutch politicians to the effective takeover of a major Dutch employer.

Both PPG and AkzoNobel currently distribute several paint brands in the Irish refinish market. It is thought that a change in corporate ownership would have little direct impact on the operation of these brands, as has been the case in other similar takeover situations.