Shares of Procter & Gamble Co (NYSE: PG) moved lower
by more than 1 percent on heavy volume late Tuesday morning after preliminary
results from a board election were released.
Investors decided Tuesday not
to appoint activist investor Nelson Peltz, whose fund owns a $3.5 billion stake to the consumer product company's board. All 11
of the company's existing directors were re-appointed to serve on the board.
However, official results have yet to be released and the vote remains "too close to call," Peltz's Trian Fund Management said in a press release following the preliminary
results. Nevertheless, the firm is "pleased with the support" it has received from investors and his activist campaign may have
played a role in making the board more accountable and less tolerant of poor performance going forward.
"Trian believes in P&G's potential and wants to see the Company grow market share again and deliver long-term sustainable
value for the benefit of all stakeholders," the press release added. "We feel strongly that a shareholder voice is needed in the
boardroom and that Trian's approach will help revitalize P&G."
In fact, Peltz's intends to challenge the vote results, he told CNBC. His numbers "don't say" the same thing and showed his
campaign was in the lead in the morning.
"I sat in that meeting — and I think you heard it," he also said. "The dissatisfaction on behalf of the retirees and the
old-time shareholders was amazing. We sit here and you hear all the rhetoric of how well things are going and then you look at
their 10-K and all five business segments have lost market share this year and last year. So, people are not fooled."
Meanwhile, shares of other related consumer packaged goods initially moved lower in sympathy. Shares of Colgate-Palmolive
Company (NYSE: CL) hit a high of $73.32 and moved below the
$73 level on heavy volume. Similarly, Clorox Co (NYSE: CLX) traded as high as $129.99 only to trade near the $128 per share level after the
preliminary votes were released.
Related Links:
Peltz's Activist
Campaign Nears A Vote And Looking Favorable
Procter
& Gamble CEO: Nelson Peltz's Activist Campaign Is 'Very Dangerous'
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