Akzo Nobel, the owner of Dulux paint, has rejected a third takeover offer by US rival PPG Industries.
The Dutch-based firm said the 26.9bn-euro (£22.8bn) bid undervalued Akzo and showed a “lack of cultural understanding of the brand”.
The company, which also said its own plans for growth were superior, has been urged to reject PPG’s offer by the Dutch government and its own workers.
However, some of its biggest shareholders favour a deal.
The move opens the door to PPG walking away or making a hostile takeover bid – something the US firm has not ruled out.
Akzo’s boss Ton Buchner said his team had conducted an “extensive review” of PPG’s latest offer, including meeting with senior managers at the US firm.
However, he said: “The PPG proposal undervalues AkzoNobel, contains significant risks and uncertainties, makes no substantive commitments to stakeholders and demonstrates a lack of cultural understanding.”
Source: BBC News