Dulux paints
Cans of Dulux paint, an Akzo Nobel brand, are seen on the shelves of a hardware store near Manchester, Britain Reuters

Akzo Nobel has rejected a third takeover bid worth £22.8bn ($29.5bn) from US rival PPG, stating that the proposal contains "significant risks and uncertainties". The Pennsylvania-based firm had previously had offer bids worth £20bn and £18.1bn, according to The Telegraph.

PPG noted that it had attempted the third and last "friendly" takeover bid, and now has a choice of either triggering a hostile takeover or withdrawing altogether.

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Akzo Nobel reasoned that the takeover would put its employees at a high risk of being made redundant, and claimed that the company could sustain a growth trajectory on its own. Moreover, four Dutch provincial governments have supported the Amsterdam-based firm's rejection of the takeover bid.

"The PPG proposal undervalues AkzoNobel, contains significant risks and uncertainties, makes no substantive commitments to stakeholders and demonstrates a lack of cultural understanding" said Akzo Nobel CEO Tom Buchner according to a report by the BBC. Buchner said his team conducted an "extensive review" of the offer.

The firm is planning a division into two businesses, where one would focus on paints and coatings while the other would spin off into specialty chemicals. Dividends for the separated entities are expected to rise with a 50% increase for 2017 and a special €1bn cash dividend due in November.

Akzo Nobel is the second Dutch entity to shrug off a US takeover bid after Anglo-Dutch firm Unilever turned down a takeover attempt by Kraft Heinz earlier this year.

Akzo Nobel shares have fallen by 2.41% during trading hours.