CINCINNATI (dpa-AFX) - Activist investor Nelson Peltz Monday announced his plans to seek a a board seat at Procter & Gamble.
In a regulatory filing, Trian Fund Management L.P., Peltz's investment funds which own about $3.3 billion of shares of Procter & Gamble, said Peltz will seek election to P&G's Board of Directors at the 2017 Annual Meeting of Shareholders.
'As one of P&G's largest shareholders, and given P&G's disappointing results over the past decade, Trian has a keen interest in helping the Company address the challenges it is facing,' the filing said.
Trian said that Procter & Gamble requires to curb cut costs and trim its bureaucracy in order to improve its performance. Trian said its analysis shows that P&G's $10 billion cost-cutting program, launched in 2012, has had no discernible impact on profits or sales growth.
In an effort to improve its profit, P&G has sold unprofitable brands, including 41 beauty brands to Coty and has turned its focus on its core brands including Tide, Pampers and Gillette.
Trian believes that Peltz's significant expertise and long track record of working successfully with management teams and boards to turn around consumer companies and drive sustainable long-term shareholder value will be invaluable to P&G as it works to overcome its challenges.
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