The Dutch Authority for the Financial Markets (AFM) has rejected PPG’s request for an extension to the Jun. 1 deadline to make a tender offer for AkzoNobel. AFM did not give reasons behind its decision.

The AFM’s resolution is the second setback in the past two days for PPG, which now has only until Jun. 1 to submit formal papers and evidence of financing if it wishes to proceed with the acquisition of its Dutch rival. Otherwise it faces a six-month “cooling off” period, during which it cannot make any further bids for AkzoNobel.

On May 29, the Amsterdam Enterprise Chamber rejected a case brought by activist investor Elliott, which has been trying to get rid of AkzoNobel’s chairman and force the company to engage in talks.

Responding to AFM’s decision, PPC stated:  “PPG will continue to assess all of its options including whether or not to file a preliminarily draft offer memorandum with the AFM by no later than Jun. 1, 2017, relating to a public offer for all the issued and outstanding shares of AkzoNobel.”

An unsolicited bid by PPG would be considered hostile by AkzoNobel, which has protective measures to prevent such a move, namely an independent shareholder foundation – or stichting – that holds sufficient voting power to block unwanted approaches.

AkzoNobel turned down PPG’s latest ‘friendly’ offer of €26.3 billion, instead unveiling its own plans as a standalone company that include exploring a spin-off or sale of its specialty chemicals business.