Trian Builds Stake in Procter & Gamble
February 14 2017 - 5:01PM
Dow Jones News
By David Benoit
Trian Fund Management LP has built a large position in Procter
& Gamble Co., the second shareholder activist in recent years
to set its sights on the consumer-products giant.
Trian is expected to disclose that it owns a stake in the
Cincinnati maker of Tide detergent, Gillette razors and Pampers
diapers as early as Tuesday, according to people familiar with the
matter. The exact size of the investment couldn't be learned.
It's not clear what Trian is planning for the investment, but
historically the firm has focused on companies it believes need
tighter focus on core operations, as well as on cutting costs and
management bureaucracy. As with other activists, it's also known
for advocating asset sales or breakups. Trian sometimes works
quietly from inside the boardroom and at other times wages public
battles for influence.
P&G had a market value of about $225 billion as of Tuesday's
close making it one of the biggest companies to face an activist,
but Trian has had success at major companies before, including
DuPont Co.
This is not the first time P&G has faced an activist. In
2012, William Ackman's Pershing Square Capital Management LP
invested in the company and called for a CEO change amid slumping
profits. A year later, Robert McDonald was replaced by his old
boss, A.G. Lafley, who remained chief executive until last year.
Company veteran David Taylor is now chairman and CEO.
Write to David Benoit at david.benoit@wsj.com
(END) Dow Jones Newswires
February 14, 2017 16:46 ET (21:46 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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