Procter & Gamble Co (PG) Proxy Fight

Marco Green
July 17, 2017

USA consumer products giant Procter & Gamble (PG) Monday became the target of potentially the largest-ever proxy fight.

Peltz's Trian Fund Management LP, which owns about $3.3 billion worth of shares at Procter & Gamble, said Monday that it's interested in helping Procter & Gamble improve its performance, saying that its financial performance over the last 10 years has been disappointing.

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.

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

Following that was over five months of talks between Trian senior leaders and P&G regarding the company's direction strategically and what it needed to boost a lagging share price. The company had a market value of $222.77 billion, as of Friday's close.

However, it does want to bring change to the company, which includes cutting cost and management.

The outcome of the proxy fight is unclear, as both sides jockey for investor support.

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. The fight will play out over the run up to the company's annual meeting, which is usually held in October.

Despite this, it believes that adding Peltz to the Board will help PG "increase sales and profits, regain lost market share, and address the company's structure and culture".

Company executives have been implementing a strategy to sell off lower-selling brands and refocus P&G on its 65 top-selling labels, including Pampers and Tide.

Other reports by Click Lancashire

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