atans1

P&G mgt reminds me of the PAP

In Uncategorized on 13/11/2017 at 6:55 am

Die, die must crush opposition to its hegemony. 

Procter & Gamble, the world’s second largest consumer group, won its battle to keep activist investor Peltz out of its boardroom. Nelson Peltz wanted to be a director (one out of 11) of what he considered a badly managed company.

P&G mgt refused and won very narrowly.

The FT reports that P&G spent at least US$100 million to deny him the seat he wanted. It had hired Goldman Sachs, Morgan Stanley, Centerview Partners and Lazard as advisers. Mr. Peltz’s Trian spent at least US$25 million.

NYT’s Dealbook reported that

 

Many of P&G’s biggest shareholders voted to give Mr. Peltz a seat on the board of the consumer product giant. BlackRock and State Street, which hold around 10% combined, voted with Trian, these people added.

Christopher Ailman, the chief investment officer of the Calstrs pension fund:
Calstrs will own Procter & Gamble long after the current management has moved on or retired. We will continue to vote our shares to ensure that individuals — like Nelson Peltz — who are a valuable asset to a board, get the opportunity to represent us and other like-minded long-term shareholders.

And

That Mr. Peltz could come so close reflects the growing power of activist investors bent on shaking up corporate boards.

As Mr. Peltz told CNBC after the P&G shareholder meeting: “There is no company today that can’t be called to task. Not one.”

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