"Akzo Nobel's boards have consistently refused to engage and did not respond to our call or letter", Michael McGarry, the PPG chairman and chief executive, said. AkzoNobel said Thursday that it remains confident in its plans to spin off its specialty chemicals unit within 12 months to drive growth.
Dulux owner Akzo had rejected three takeover bids from PPG, forcing the USA giant to either attempt a hostile takeover or throw in the towel.
"It's not a mega-surprise that PPG is withdrawing". The US company said the offer was an effort to dispel worries expressed by Mr Burgmans about any agreement running afoul of regulators.
Going directly to shareholders was destined to be rocky. PPG said it will not pursue a public offer for the AkzoNobel shares.
"We believe this will lead to a step change in growth and long-term value creation for our shareholders and all other stakeholders".
The fund claimed he was in "flagrant breach" of his duties to investors for rejecting PPG's offers.
Under Dutch securities rules, PPG can not make another offer for Akzo for six months. The U.S. company made first bids of 20.9 billion euros (23.47 billion U.S. dollars) and 22.4 billion euros in March this year, followed by a third and last bid of 26.9 billion euros (29.4 billion U.S dollars) in late April.
In April, Akzo put forward an alternative plan to the merger, promising to give shareholders 1.6bn euros in extra dividends.