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

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”.

Trian also said if elected, Peltz’s “first action would be to propose that the board immediately re-appoint to the board whichever current director has not been re-elected”. However, Trian did not call for a breakup of the company.

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.

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

The announcement by Trian marks its official launch of its biggest ever proxy fight, with the activist investor up against a consumer products giant worth $222.6 billion.

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

Trian said P&G has underperformed the S&P 500 and the company’s corporate peers over the last decade. P&G is expected to hold its annual shareholder meeting in October.

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.

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.

This battle comes during a time activist investor supported by successful campaigns over the years for changes at companies throughout the well as overseas, using their huge coffers to seek out larger prey.