By Lauren Pollock
DuPont Co. named two new directors to its board, a move that
comes as the chemicals company faces pressure from activist
investor Trian Fund Management LP to split itself up.
The company said Edward Breen, who is currently chairman of Tyco
International PLC, and James Gallogly, the previous chief executive
of LyondellBasell Industries NV, would join the board effective
immediately.
DuPont's conglomerate structure and diverse business portfolio
have come under scathing attack from Trian over the past 18 months,
and the activist said last month that it would seek four seats on
DuPont's board.
A representative from Trian wasn't immediately available for
comment on Thursday's board changes.
Trian, headed by Nelson Peltz, has argued the company's share
value could effectively double if it split itself into three--one
aimed at agriculture and nutrition, another for industrial
materials and a third for performance chemicals, which produces
materials that go into things like nonstick frying pans and house
paint.
Mr. Breen has experience with corporate breakups. He was
chairman and chief executive CEO of Tyco International from 2002 to
2012, during which he oversaw two break-ups of the company
resulting in the spin-offs of Covidien, Tyco Connectivity, ADT
Corporation and the merger of Tyco Flow Control with Pentair,
DuPont said.
The board appointments come as two current directors, Curtis
Crawford and Richard Brown, transition off the DuPont board to
eventually serve as directors at Chemours Co., DuPont's performance
chemicals business that is being spun off.
DuPont last week gave a disappointing outlook for 2015, saying
its earnings would take a significant hit from the strengthening
dollar, though the chemicals company indicated it would hit its
goal to cut $1 billion in costs well ahead schedule.
As part of the effort, DuPont is planning to spin off its
performance chemicals segment--best known for materials in nonstick
frying pans and house paints--this year. DuPont has said it plans
to use the proceeds of the spinoff to repurchase up to $4 billion
in shares.
Write to Lauren Pollock at lauren.pollock@wsj.com
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