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Peltz's Activist Campaign Nears A Vote And Looking Favorable

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Peltz's Activist Campaign Nears A Vote And Looking Favorable

Activist investor Nelson Peltz's campaign against Procter & Gamble Co (NYSE: PG) will soon be decided by shareholders.

Peltz made the case as to why he deserves a seat at P&G's board and the company responded with an opinion that the billionaire investor has nothing new or unique to bring to the table. But investors will decide Tuesday when the company hosts its annual general meeting with the slate of directors on the voting ballot, Bloomberg reported.

Heading into Tuesday's meeting, Peltz and his Trian Partners investment firm received the support of the three major shareholder advisory firms, including Glass Lewis, Institutional Shareholder Services and Egan-Jones Ratings, Bloomberg noted. The advisory firms highlighted Peltz's success in helping consumer companies turn around, including Mondelez International Inc (NASDAQ: MDLZ) and Wendys Co (NASDAQ: WEN).

"The addition of one well-qualified nominee, who holds a large economic stake, appears likely to have benefits that outweigh the potential risks," Bloomberg quoted an ISS report as saying.

But some among Wall Street aren't as optimistic, especially when considering Peltz lost a similar proxy battle in 2015 against DuPont Co even though he received support from two of the same shareholder advisory firms.

"There is some skepticism among some in the investment community that they do deserve the benefit of the doubt," Jefferies' Kevin Grundy told Bloomberg.

However, should Peltz lose his activist campaign, he won't be going away and will continue to work hard to make sure P&G's board accountable. From the company's perspective the board will "feel greater urgency to deliver," the analyst also said.

Related Links:

Procter & Gamble CEO: Nelson Peltz's Activist Campaign Is 'Very Dangerous'

Here's Why Procter & Gamble Is Wrong In Pushing Peltz Away
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Image Credit: By Yasmine Ag (Own work) [CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0)], via Wikimedia Commons

Posted-In: activist investor hedge fund Jefferies Kevin Grundy Nelson Peltz Trian PartnersTop Stories Media Best of Benzinga

 

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