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

Procter & Gamble Faces Showdown With Activist Investor Peltz

Procter & Gamble Faces Showdown With Activist Investor Peltz

(PG) shares were marked to open lower Monday, July 17, as it looks set to face a proxy battle from Nelson Peltz.

Trian's move is the latest in a lengthening series of assaults on the world's biggest consumer goods companies by those who think they're too conservatively run.

The past 12 months alone have seen Third Point's Daniel S. Loeb push for changes at Nestlé and Paul E. Singer's Elliott Management take on Samsung and the mining giant BHP Billiton. The company had a market value of $222.77 billion, as of Friday's close.

Trian, which owns about $3.3 billion of P&G stock, said P&G has underperformed relative to its peers and the S&P 500 over the past decade, saying that total shareholder return was less than half that of its peers and has been in the bottom quartile over recent time frames. The shares are down 5% from their peak in late 2014.

"We believe that P&G has an overly complex organizational structure and a slow moving and insular culture", Trian Partners said in a notice to company shareholders.

In an interview with The Wall Street Journal, which broke the news last night, Peltz said that "We need a game-changing attitude at P&G.We just can't keep going along the same path".

Those are among the details in an SEC filing Monday, in which the hedge fund founder seeks a seat on P&G's board.

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

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