By David Benoit
Trian Fund Management LP has built a stake valued at about $1.05
billion in Bank of New York Mellon Corp., according to a person
familiar with the matter.
The activist investor, led by Nelson Peltz, wants to discuss
ideas for creating more shareholder value but hasn't had any
conversations yet with the trust bank's management, the person
said.
"Trian is a respected investment firm. We look forward to
engaging with them as we do all our investors," a Bank of New York
Mellon spokesman said Monday.
Bank of New York Mellon, an investment manager and the bank for
Wall Street's banks, has made significant changes this year. It
said in May that it would sell its corporate trust unit, and it
sold its corporate headquarters building for $585 million.
Trian had a small position as of the end of March, according to
a Monday regulatory filing, though the firm has since added to the
stake. The fund had told its own investors in a quarterly letter in
April that it had a new "core position," though it provided few
details on it at the time.
The nation's largest banks are rarely targeted by activist
investors, who take stakes in public companies and push changes
such as selling divisions or returning more capital to
shareholders. Banks face strict regulation on making such
decisions, which some activist investors say could complicate
efforts to drive change from the outside.
But Trian has been among the few activists to invest in the
banking world, including once taking a stake in Bank of New York
rival State Street Corp. In 2011, Trian pushed State Street to
separate its giant investment management arm, State Street Global
Advisors, though that never happened.
Trian also holds a stake in investment bank Lazard Ltd. It has
met with the bank's management and said last year that it supported
the bank's strategic plans.
Write to David Benoit at david.benoit@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires