Procter & Gamble targeted by Peltz proxy fight

Procter & Gamble targeted by Peltz proxy fight

Procter & Gamble targeted by Peltz proxy fight

Trian Fund Management, which owns $3.3 billion shares of Procter & Gamble, said on July 17 it will lobby shareholders to elect its chief executive and founding partner, Nelson Peltz, to the board of the consumer-products company.

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.

P&G's filing also noted that last week during a meeting between members of the board at P&G and Trian, that Trian said it would move forward with the campaign to have Peltz elected to the board because the company had not be moving quickly enough to improve overall performance. 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.

What Americans love and hate about Trump's presidency so far
Most of the other final national polls taken before the election showed Clinton with a similar lead . But then, these basement-level numbers are nothing new for Trump.

Nevertheless, the activist investor will now be seeking support from other shareholders and could highlighted the stock's poor performance over the years. The company had a market value of $222.77 billion, as of Friday's close.

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". "The board is confident that the changes being made are producing results, and expresses complete support for the company's strategy, plans, and management". P&G is expected to hold its annual shareholder meeting in October.

This battle comes during a time activist investor supported by successful campaigns over the years for changes at companies throughout the well as overseas, using their huge coffers to seek out larger prey.

Related news