Peltz goes for the close shave at Procter & Gamble

Peltz goes for the close shave at Procter & Gamble

Peltz goes for the close shave at Procter & Gamble

Last week, P&G officially declined to give Peltz a seat on the board. However, P&G shares are up 5.2% year to date, based on Friday's closing price.

The investment firm also says that it isn't seeking to break Procter & Gamble Co up, or replace CEO David Taylor. Trian said it is concerned that $13 billion of identified cost savings will not materialize given an "overly complex organizational structure and a slow moving and insular culture".

P&G has said changes introduced from late 2015 will save $US10 billion in annual expenses by 2021, and has cut 24,000 jobs since 2012.

P&G has increased operating profit margins, to 20.6% past year from 19.1% in 2011, and says it ranks third in the industry - behind competitors that also charge high premiums. Once the company's largest investor with a 1% stake, Ackman sold off the last of that investment in May 2014.

Earlier this year, Unilever, which owns the Ben & Jerry's ice cream and Dove personal-care brands, fended off an unwanted takeover approach from Kraft Heinz Co., prompting the Anglo-Dutch giant to say it would take steps to improve shareholder returns.

And here lies the problem and the foundation of Peltz's activist campaign.

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The woman posted yet another post on Facebook and wrote, "My 6 year old took the photos ... no qualifications and still did a mighty job".

Mr Peltz said he had tried to get P&G to expand the board to enable him to join it without an election showdown but in spite of "numerous constructive meetings" he was rebuffed and will now contest a seat against the existing directors. Historically, there have been executives who run business units and others who are in control of sales and marketing, which Trian argues clouds who has ultimate responsibility for profits. The company later announced a $60 billion merger with Dow Chemical Co. The request was deemed "unnecessary" by P&G directors in light of recent initiatives the company had implemented, according to the proxy filing.

US consumer products giant Procter & Gamble (PG) Monday became the target of potentially the largest-ever proxy fight.

Typically, Trian has tried to avoid the perception it fights companies.

"As one of P&G's largest shareholders, and given P&G's disappointing results over the past decade, Trian has a keen interest in helping the company address the challenges it is facing", Trian said in a statement.

However, absent strong growth more than five years into the strategy, P&G represented a large target for dissatisfied Wall Street investors. Meanwhile, the company is losing market share in various categories yet it's the only company in the world that boasts over 20 billion-dollar brands.

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