PITTSBURGH (AFX) - Food maker H.J. Heinz Co. on Monday sharpened its criticism of board nominees proposed by billionaire investor Nelson Peltz and his partners.
The Pittsburgh-based company said the proxy fight's state purpose of improving governance by replacing five of the board's 12 members was hypocritical, arguing that Peltz's nominees lack relevant experience.
Peltz is a principal of New York-based Trian Group, an investment firm that owns 5.5 percent of Heinz's shares. He is seeking to add his board nominees to implement a plan he says will grow shareholder value.
Heinz dismissed the plan as flawed, saying it would cripple the company, and introduced a plan of its own.
Last week, Peltz mailed out a proxy statement to Heinz shareholders, asking them to vote for his slate of nominees at the company's annual shareholder meeting on Aug. 16.
Heinz immediately fired back with a statement saying the nominees -- including Peltz's longtime business partner, a son-in-law, a close friend and a former employee -- were 'self-interested' and unqualified.
The company reiterated that sentiment with another press release Monday, calling 'far-fetched' the assertion that the nominees 'would think independently and vote their own conscience.'
'Heinz believes that, by seeking a voting bloc of nearly half the Heinz Board, the Peltz/Trian proxy is a thinly-disguised grab for control of Heinz,' it said.
The statement also said that the Trian nominees have a 'dismal lack of qualifications.'
Heinz shares rose 36 cents to $41.97, up 0.9 percent, in Monday's trading on the New York Stock Exchange.
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