Nelson Peltz Says No Company Is Too Big for Activism

Andrew Cummings
October 10, 2017

Procter & Gamble Co repelled a challenge from activist investor Nelson Peltz for a board seat on Wednesday after shareholders backed all 11 directors nominated by the USA consumer goods company's management. Trian officially nominated Peltz for the board in July.

Mr. Peltz said whether he won or lost, "the shareholders have spoken", and want a bold change to occur at the company.

The outcome was close and Trian says it will await the certified results.

Activist investors have gone after ever bigger targets in 2017, with Dan Loeb's Third Point LLC taking a stake in Nestle SA, Europe's largest company with a market valuation of $267 billion.

The battle may not be over, Peltz immediately asked for a recount of the votes after the announcement.

But Procter & Gamble Co. says that since David Taylor was named CEO two years ago, the company has been moving in the right direction, and that giving Peltz a seat would disrupt the work that he is doing. Preliminary results show shareholders have rejected Peltz's board bid.

"I don't think they're serving their shareholders properly", he said.

Shares of P&G dropped more than 1 percent, to $91.02, in afternoon trading.

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