By Lauren Pollock
DuPont Co. named two new directors to its board with experience
in corporate breakups and restructurings, 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, which is headed by Nelson Peltz,
wasn't immediately available for comment on Thursday's board
changes.
DuPont said it reviewed all of Trian's proposed nominees, and
the board concluded there was one it would consider, if Trian were
to withdraw its slate and support DuPont's candidates.
However, the company said Trian refused to consider any proposal
that didn't involve Mr. Peltz himself joining the DuPont board.
Trian 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 spinoffs of Covidien, Tyco Connectivity, ADT Corp.
and the merger of Tyco Flow Control with Pentair, DuPont said.
For his part, Mr. Gallogly led LyondellBasell through the
bankruptcy process, along with a restructuring at the chemical
company that included cutting its staff by 20% and other cost
reductions. LyondellBasell exited the bankruptcy process in less
than a year and is now the third-largest independent chemical
manufacturer in the U.S., DuPont says.
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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