Peltz goes for the close shave at Procter & Gamble

Jay Anderson
July 17, 2017

Investor Nelson Peltz has launched a fight for a board seat at Procter & Gamble Co., in an effort to jolt the consumer-products giant whose sales and profit growth stalled, Trian Fund Management LP said.

With the annual meeting of P&G usually in October, both sides have approximately three months to keep discussing how to avoid a vote by shareholders on Peltz, who if he is elected would increase the members of the board to 12.

Trian Partners called for "decisive action that goes above and beyond what the company has presently committed to do".

In response, Cincinnati-based P&G said it has "maintained an active and constructive dialogue" with the Peltz-led partnership since Trian made its investment in the company.

Trian had sought a seat for Peltz on P&G's board earlier this year, but was declined by the company. 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.

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

P&G said in an email on Monday that its board was confident that the changes being made by the company were producing results and expressed complete support for its strategy, plans, and management.

The move, first reported by The Wall Street Journal Monday, makes P&G, with a market value of $222 billion, the largest company ever to face a proxy fight.

Trian said P&G has underperformed the S&P 500 and the company's corporate peers over the last decade.

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.

Including dividends, shares of P&G have also netted investors a 4 percent return over the past year.

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