By Angela Chen
DuPont Co. has agreed to sell its Dupont Theatre and related
assets to the Grand Opera House, months after the chemicals company
was criticized by Trian Fund Management LP for retaining its
hospitality businesses.
Financial terms weren't disclosed.
DuPont, which is currently up against Nelson Peltz's Trian Fund
Management in a high-profile proxy fight, has long operated several
hospitality institutions at its headquarters in Wilmington, Del.
These include the 12-story Hotel du Pont and the DuPont Country
Club. The company maintains that these hospitality businesses
represent "an immaterial component" of total company costs.
But in September, Trian highlighted its hospitality businesses
as symbolizing profligacy and excess corporate costs at DuPont
headquarters. Though such assets were originally developed to
entice employees, corporate governance experts said owning such
assets is rare today among big publicly traded companies in the
U.S.
Now, DuPont will sell the theatre, which is more than 130 years
old, to The Grand Opera House, a performing-arts hall in
Wilmington.
After the deal closes next week, the DuPont Theatre will be
renamed The Playhouse on Rodney Square. The sale will have no
impact on the remainder of the season, subscription packages or
ticket prices.
Trian disclosed last Thursday that it will seek seats on
DuPont's board, aiming to shake up a company that has outperformed
the broader stock market by about 50% over the past five years.
Trian argues that DuPont's businesses could perform even better if
freed from what the investor calls a cumbersome corporate
bureaucracy. The investment firm is seeking four director
candidates for DuPont, including Mr. Peltz.
Write to Angela Chen at angela.chen@dowjones.com
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