Procter & Gamble Faces Showdown With Activist Investor Peltz

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Procter & Gamble Faces Showdown With Activist Investor Peltz

Peltz is not seeking a breakup of the company or a new CEO - for now - but says it wants to shake up PG's "slow-moving and insular" culture, according to Trian's SEC filing.

Activist investor Nelson Peltz is attempting to secure a seat on the board at Procter & Gamble, seeking faster changes at the consumer products company. For the last two years, executives urged investors to be patient.

For instance, Peltz acknowledged during a CNBC interview that P&G is a "great company" that's backed by a "phenomenal" CEO David Taylor who hasn't yet lived up to his full potential.

Trian also said P&G needs to cut costs and reduce corporate bureaucracy.

With a market capitalization of $223 billion, P&G would be the largest company to face a board seat proxy fight.

P&G's shares have underperformed peers such as Colgate-Palmolive and Johnson & Johnson, as well as the broader S&P 500 index, in the past decade. One of Trian's most recent high-profile campaigns was at DuPont, where the fund argued as early as 2013 that the company should be broken up to realize shareholder value.

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US consumer products giant Procter & Gamble (PG) Monday became the target of potentially the largest-ever proxy fight.

Trian doesn't typically take part in proxy fights and often simply provides advice. Last week, P&G officially declined to give Peltz a seat on the board.

It's not the first time P&G has been targeted for a shake-up.

Calling P&G's financial results over the last decade "disappointing", Trian cited weak shareholder returns, deteriorating market share and excessive cost and bureaucracy in the Securities and Exchange Commission filing that announced the challenge.

"Disruptive and existential threats are impacting the entire consumer packaged goods industry", Trian wrote.

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