Nelson Peltz And Procter & Gamble: The Biggest Proxy Battle Ever

Cornelia Mascio
Luglio 17, 2017

The filing sets up a proxy fight in which shareholders will be asked to decide whether to add Peltz as a 12 board member, representing Trian Partners, a NY fund that owns more than $3 billion in P&G shares.

Trian's move is the latest in a lengthening series of assaults on the world's biggest consumer goods companies by those who think they're too conservatively run. Both of the European companies have since been forced to increase shareholder payouts and accelerate planned efficiency measures.

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.

In a bid to boost profits even as sales remain stagnant, P&G has sold unprofitable brands, including 41 beauty brands to Coty Inc (coty), and focused on core brands such as Tide, Pampers and Gillette. Shares closed at $87.10 on Friday, July 17. The shares are down 5% from their peak in late 2014.

"We believe that many of (P&G's) challenges relate to the company's organizational structure and culture, which can be highly resistant to change", the fund said.

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.

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.

"We need a game-changing attitude at P&G", Peltz told WSJ.

Nevertheless, the activist investor will now be seeking support from other shareholders and could highlighted the stock's poor performance over the years.

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