It previously offered to buy Akzo Nobel for $22 billion, but the bid was rejected.
United States chemicals giant PPG Industries has upped the ante in its takeover pursuit of AkzoNobel by sweetening its offer for a second time.
The hedge fund got so excited about its planning two weeks ago that Gordon Singer, Elliott portfolio manager and Paul Singer's son, accidently copied an Akzo rep on an email outlining its plans to talk to PPG.
In its new proposal, PPG said it would commit to a reverse break-up fee to demonstrate its confidence the deal would obtain antitrust approvals and said it has addressed details surrounding Akzo's concerns about employees, pensions, and where combined operations would be based.
PPG Industries Inc. again boosted its offer price for Dutch paint and chemicals maker Akzo Nobel NV, extending the two companies' monthslong takeover battle.
The deal is comprised of cash of €61.50 and 0.357 shares of PPG common stock, values Akzo Nobel at $28.8 billion, PPG said, including the assumption of net debt and minority interests.
Akzo has said it will "carefully review and consider" the third proposal.
PPG said the proposed deal would deliver annual cost savings of 750 million United States dollars (£585 million) and was "vastly superior" to the Dutch firm's plans to stay independent.
Akzo, which has been under pressure from some shareholders to enter discussions with PPG, last week unveiled its own plan to raise its value, which included spinning off its chemicals business and paying more dividends.
Professor John Colley, of Warwick Business School, said PPG's new offer has given AkzoNobel little option but to engage. PPG have threatened a hostile bid if this does not elicit a negotiation.
In addition, the Pittsburgh company says it won't relocate any of Akzo Nobel's European productions plants to the U.S.