Elliott says Akzo Nobel 'flouting' basic shareholder rights

[July 26, 2017]  LONDON (Reuters) - Hedge fund Elliott Advisors on Tuesday criticized Akzo Nobel for dismissing its request yesterday for shareholders to add items to the agenda of a Sept. 8 extraordinary general meeting.

Cans of Dulux paint, an Akzo Nobel brand, are seen on the shelves of a hardware store near Manchester, Britain, April 24, 2017. REUTERS/Phil Noble/File Photo

The $33 billion firm -- which yesterday took its concerns about the nomination of a new CEO and other issues public after the Dutch paintmaker refused to engage -- said Akzo Nobel "has chosen yet again to flout fundamental shareholder rights".

Elliott called on Akzo Nobel to "immediately remedy its actions and to allow shareholders to exercise their fundamental rights".

The hedge fund also said the company should commit to adding a vote to remove chairman Antony Burgmans to the EGM, even after he announced earlier on Tuesday that he would step down in April 2018.

Elliott, which holds a 9.5 percent position in Akzo Nobel, has repeatedly pushed for Burgmans to depart as soon as possible, even taking its demand to court.

(Reporting by Maiya Keidan and Bart Meijer; editing by Simon Jessop)

[© 2017 Thomson Reuters. All rights reserved.]

Copyright 2017 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.