What Can An Activist Do For P&G?

Peltz Launches Proxy Fight with Procter & Gamble

Peltz Launches Proxy Fight with Procter & Gamble

However, it has suffered in recent years from the slowdown in the global economy as well as from competition from startups.

Trian, which describes itself as one of P&G's largest shareholders, said the Cincinatti-based consumer goods group had suffered "disappointing results over the past decade" and that it wanted to "help the company address the challenges it is facing".

Billionaire investor Nelson Peltz blamed Procter & Gamble for allowing online shave club rivals to gobble up Gillette's razor market share.

P&G seems ready to make a similar case to DuPont's: CEO David Taylor only started in November 2015 and has been moving to turn the enormous organization.

Still, Trian believes P&G has failed to move fast enough to arrest its market-share losses and convert cost cuts into profit, questioning the credibility of the company when it comes to carrying out promises. But the focus is rally on P&G's cost cutting efforts, with Peltz arguing that the company failed to capitalize on its cost-cutting efforts over the past five years.

Procter & Gamble's revenue in the fiscal third quarter declined.

The news follows months of discussions about whether Peltz should be made a director at P&G, a proposal that was ultimately rejected, and squabbles over how to improve the company's sales and growth.

Trian will have to convince investors that Mr. Peltz's experience - and stock gains - at consumer giants like Mondelez International Inc. and H.J. Heinz Co. - recommend him for a board stacked with well-known business leaders.

Peltz is not seeking a breakup of the company or a new CEO - for now - but says it wants to shake up PG's "slow-moving and insular" culture, according to Trian's SEC filing.

In a statement, Peltz said he had identified further areas for cost savings of as much as $13 billion.

P&G has increased operating profit margins, to 20.6% previous year from 19.1% in 2011, and says it ranks third in the industry - behind competitors that also charge high premiums.

More information concerning the proxy fight between Procter & Gamble Co and Trian can be found at these links. One of Trian's most recent high-profile campaigns was at DuPont, where the fund argued as early as 2013 that the company should be broken up to realize shareholder value.

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