P&G Stock Slumps As Peltz Loses Proxy Fight; Trian Demands Recount

Procter & Gamble stock price is sliding, down over 2%, following news that Trian's Nelson Peltz has lost his fight to be elected to the board.

The largest and most expensive corporate proxy battle came to an end Tuesday with Procter & Gamble successfully fending off a campaign by the financier Nelson Peltz for a seat on its board of directors.

The announcement of the preliminary vote count came at the company’s shareholder meeting in Cincinnati.

The P&G price has risen since the summer as Peltz began his proxy fight but those gains are being rapidly unwound..

However, this is not over yet, as Trianis disagreeing with the P&G and is to challenge the count...

“According to our proxy solicitors, today’s vote is too close to call and it will take more time to determine the outcome. We await the certified election results by the independent inspector of election. Trian is pleased with the support we have received from shareholders and all of the nation’s independent proxy advisory firms. We believe shareholders’ voices are being heard at P&G today, thanks to Trian’s involvement.

 

“With approximately $3.5 billion invested in P&G, Trian has a vested interest in the long-term success of the Company. If elected to the P&G Board, Nelson Peltz plans to start engaging collaboratively with his fellow directors. He has a long history of working collegially with boards and management teams and is looking forward to working closely with P&G’s leadership to revitalize P&G. Regardless of the final voting results, Trian believes management and the Board have been put on notice by shareholders – a continuation of the past decade’s underperformance is simply unacceptable. Trian is confident that P&G shareholders will hold the Board and management accountable and will be far less tolerant of lackluster performance going forward.

 

“Trian believes in P&G’s potential and wants to see the Company grow market share again and deliver long-term sustainable value for the benefit of all stakeholders. We feel strongly that a shareholder voice is needed in the boardroom and that Trian’s approach will help revitalize P&G.”

Comments

LawsofPhysics Tue, 10/10/2017 - 10:43 Permalink

LOL!!!!  The buybacks will continue so that the "club members" can keep their ill-gotten gains.Creation of new products of real value?  not so much... "Full Faith and Credit"

The_Juggernaut spastic_colon Tue, 10/10/2017 - 12:05 Permalink

"Slumps" to 4% below its all-time high.  All companies should be so unfortunate.P&G's debt isn't increasing, cash is increasing, pays a 3% dividend with a 66% payout ratio and that dividend has been increasing for 60 fucking years.  What more could you ask for?  This is one of the healthiest companies on the planet. ...and Walmart is beefing up their online presence.  They're strong enough to do that while increasing shareholder value.  That's another one of the best values in the entire world.  No wonder people lose their asses in teh stock market.

In reply to by spastic_colon

junction LawsofPhysics Tue, 10/10/2017 - 11:12 Permalink

The tactics of Peltz and his ilk used to be called "greenmail."  These greenmailers are Wall Street's version of a Mafia bust out operation, where the mob takes over a business, loads it with debt, than lets the business collapse.  Sam Zell did that to the Tribune Company, buying it for $8 billion of borrowed money, loading the corporation with $5 billion more of debt and promising to turn the business into an ESOP.  When that bogus plan crashed in 2008, Zell filed for bankruptcy.  Notice the silence from the Justice Department as these looters rip off shareholders with these buyback plans that have wrecked the U.S. economy. 

In reply to by LawsofPhysics

buzzsaw99 Tue, 10/10/2017 - 12:51 Permalink

Those maggots just wanted to split up the company and sell it piecemeal to the highest bidder. P&G should keep slashing their advertising budget, stay in one piece, and keep paying the dividend. Steady as you go, let the quick buck artists pound sand.