Trian Fund Management LP seeks a seat at P&G’s board

The fund aims to boost shareholder’s value in the company.

 

A regulatory filing has revealed that activist investor Trian Fund Management LP is seeking a board seat for Nelson Peltz at Procter & Gamble Co.

Trian Fund Management LP, run by billionaire investor Peltz, owns P&G’s stocks worth nearly $3.3 billion. The firm has urged shareholders to vote for Peltz at P&G’s next shareholder meeting, citing his track record of working with management to turn around consumer companies.

This is the second time Peltz is trying for a board seat in the company. He was declined earlier.

In the filing Trian said it was launching the proxy fight since P&G is continuing to underperform and there is a lack of tangible evidence that the company has embraced the initiatives that were discussed at various meetings between the parties.

P&G has tried to kickstart sluggish sales and has divested unprofitable brands, including 41 of them to Coty Inc. The company has focused on its core brands, including Gillette, Tide and Pampers.

These efforts however have not had their desired impact on its stock price which continues to slump below levels it traded at the beginning of this year.

“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,” said Trian on Monday.

The fund has stated it is not seeking to break-up of P&G or cause the ouster of its chief executive.

If Trian were to be elected, he would only seek re-election of the director he replaced.

P&G’s annual meeting is typically held in October.

P&G was not immediately available for comment outside regular business hours.

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