PPG Talks Start Bidding War Speculation

PPG Industries Inc., the Pittsburgh-based paints and glass group, confirmed it is in talks with British coatings and fibers company Courtaulds, which had accepted a $3.77-billion offer from Dutch chemical company Akzo Nobel three weeks ago. PPG has teamed with investment bank Donaldson, Lufkin & Jenrette in its approach, and said that if the talks lead to a deal, it will retain the coatings business and DLJ will acquire the remaining businesses. Akzo declined to comment on news of a possible rival bid. On Monday, Akzo said that it would “rethink” its position should a higher bid emerge, and Courtaulds said that in the absence of a firm new offer it was still recommending Akzo’s bid. On the NYSE, PPG shares rose $3 to close at $75.25, and DLJ’s shares slipped 56 cents to close at $45.94. Courtaulds’ American depositary receipts fell 13 cents to close at $7.88 on the American Stock Exchange.