Procter & Gamble Co (PG) Proxy Fight

Paterniano Del Favero
Luglio 17, 2017

The Trian Fund Management investment firm on Monday said it nominated Nelson Peltz for a board seat at Procter & Gamble to shake up the stalled consumer-products giant. Trian said it was disappointed by the rejection and advised those in attendance it would push ahead with a proxy fight. Trian will compensate Daley, who spent 35 years at the company before retiring in 2009, with a total of $250,000 to his family's charitable foundation.

The firm, which initially revealed its position in February, now holds 37.6 million P&G shares, or about 1.5 percent.

"While P&G leadership says they are addressing the underperformance issue, shareholders have heard similar promises in the past and results have not improved", Trian said in the filing.

"P&G's Board and management team are keenly focused on executing the company's strategy to drive innovation, accelerate organic sales and volume growth, improve productivity and cost structure, and strengthen P&G's organization and culture", the company said in a formal statement. P&G declined last week to add Peltz to the board following several months of discussions between the company and Trian.

The consumer goods giant, whose products include Crest toothpaste and Gillette razors, has struggled in recent years to win over Wall Street analysts anxious by increased competition and declining market share, particularly in the United States.

The company has a market value of roughly $222.7 billion, based on the number of outstanding shares as of late March. For the last two years, executives urged investors to be patient.

This is also not the first time Procter & Gamble has faced activist pressure: The billionaire William A. Ackman pushed the board to oust chief executive Robert A. McDonald in 2013, forcing Mr. McDonald's predecessor, Alan G. Lafley, out of retirement and back as chief.

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