On Monday Akzo Nobel NV (AKZOY) confirmed that it is in talks with Axalta Coating Systems about a possible merger, sending shares down in Amsterdam.
The Dutch paintmaker opened up that it was in "constructive discussions" about a "merger of equals" of AkzoNobel Paints & Coating and Axalta and it would create a company with the market value of about $30 billion.
AkzoNobel had been responding to market speculation about the talks that sent Axalta's shares up to 16.95% Friday to close at $33.15 in New York.
Akzo Nobel Confirms $30 Billion Merger With Smaller U.S. Rival Axalta
Changing hands at €76.22, Akzo Nobel shares were down 1.64% in Amsterdam in the first half hour of trading. The company is under pressure from activist investor Elliott management months after it rejected $30 billion takeover approach from PPG Industries PPG earlier this year.
Video: Akzo Nobel seeks $30 billion merger with smaller US rival Axalta
PPG can make another bid from Dec. 1, under Dutch takeover law.