Procter & Gamble heads for boardroom showdown with activist Nelson Peltz

Paterniano Del Favero
Luglio 17, 2017

The past 12 months alone have seen Third Point's Daniel S. Loeb push for changes at Nestlé and Paul E. Singer's Elliott Management take on Samsung and the mining giant BHP Billiton. Shares closed at $87.10 on Friday, July 17.

Peltz, an activist investor and co-founder of Trian, also owns $3.3 billion worth of P&G stock and is looking to gain representation at the board of directors. The shares are down 5% from their peak in late 2014.

Trian said it was not seeking a break-up of P&G or the ouster of the company's chief executive, adding that in case Peltz was elected he would seek re-election of the director he replaced.

Trian said in the filing it was launching the proxy fight because of P&G's continuing underperformance and the lack of tangible evidence that the company had embraced initiatives discussed at various meetings between the parties.

"As a member of the board, Mr. Peltz would seek to help the company increase sales and profits, regain lost market share, and address the company's structure and culture, and we believe that he can contribute far more value operating from within the company's boardroom than by merely advising the company from the outside", Trian wrote in its proxy materials.

In an interview with The Wall Street Journal, which broke the news last night, Peltz said that "We need a game-changing attitude at P&G.We just can't keep going along the same path".

Nevertheless, the activist investor will now be seeking support from other shareholders and could highlighted the stock's poor performance over the years. The fight will play out over the run up to the company's annual meeting, which is usually held in October.

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