(Bloomberg) -- Private equity firms KKR & Co. and CVC Capital Partners have begun working on a joint offer for Akzo Nobel NV's specialty chemicals division, according to people familiar with the situation.
Advent International Corp. and Apollo Global Management LLC are also considering bids for the division, which could be valued at more than 9 billion euros ($10.6 billion), said the people, who asked not to be identified because the deliberations are private.
Akzo Nobel has said it plans to dispose of the unit, part of its defense against PPG Industries Inc.'s unsuccessful 26.9 billion euro takeover bid, and will solicit offers in September. The sale process is at an early stage and no final decisions have been made, the people said. Representatives for CVC, KKR, Advent, Apollo, Akzo Nobel declined to comment.
Akzo Nobel's rose 1 percent to 76.42 euros at 3:30 p.m. in Amsterdam trading. The shares had earlier gained as much as 2.4 percent, the biggest intraday gain since April.
The buyout firms may face competition from strategic bidders. The business is likely to attract companies in the industry, including Evonik Industries AG and BASF SE, people familiar with the matter said in March. Carlyle Group LP may also look, they said at the time.
The company has had a turbulent few months following the PPG offer, which was withdrawn in June. Chief Executive Officer Ton Buechner resigned last week for health reasons. That leaves new CEO Thierry Vanlancker, who joined the company last year, to carry out the ambitious targets Akzo Nobel put forth as its defense against being sold. Activist investor Elliott Management Corp., which holds a stake in Akzo Nobel, is attempting to oust the company's chairman.
--With assistance from Ellen Proper
To contact the reporter on this story: Sarah Syed in London at ssyed35@bloomberg.net.
To contact the editors responsible for this story: Aaron Kirchfeld at akirchfeld@bloomberg.net, Amy Thomson, John Bowker
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