Procter & Gamble faces showdown with activist investor

Trader on the floor of the New York Stock Exchange

Mr. Peltz's Trian Partners, which owns a $3.3 billion stake, is taking a more surgical approach to the $223 billion company - whose brands include razors and detergent - than it did with its last proxy fight at DuPont, lobbying for a single board seat. P.&G.is increasing its online presence and has fought back with price cuts, but its stock price has lagged competitors' and the Standard & Poor's 500 index in the a year ago, and - as Mr. Peltz points out - over the last decade. Peltz's fund has also invested in PepsiCo - a stake that it said previous year it no longer held - as well as Wendy's, Mondelez International and General Electric.

Peltz's Trian Fund Management is a key shareholder in P&G, with roughly $US3.3 billion of stock. The firm's campaign website (revitalizepg.com) and press release has few immediate changes proposed for the company other than advocating for a geographic organizational structure that it believes will empower divisional leaders to make faster and better decisions.Shares of P&G were up slightly at $87.72 in afternoon trade. If the report is correct, P&G would be the biggest company ever to face a proxy fight, (in which shareholders are persuaded to gather enough shareholder proxies to win a corporate vote). P&G's quarterly organic sales, which excludes acquisitions and divestitures, has fallen just once during his one and half years at the helm. Trian won two seats on H.J. Heinz's board in its 2006 proxy fight, and lost its battle to get board representation at industrial conglomerate DuPont in 2015. "I am quite surprised and very disappointed because I think David (Taylor) and I have developed a very positive relationship", Peltz told CNBC, when asked if he was surprised that the dialogue had turned into a proxy fight.

Shares of P&G are up less than 4 percent this year. "I like the man". "The board is confident that the changes being made are producing results, and expresses complete support for the company's strategy, plans, and management".

In a statement, Peltz said he had identified further areas for cost savings of as much as $13 billion.

Trian and P&G agree on some steps the company needs to take, such as cutting costs and restructuring management, and the investor supports Chief Executive David Taylor and the company's 11-person board.

Trian, which describes itself as one of P&G's largest shareholders, said the Cincinatti-based consumer goods group had suffered "disappointing results over the past decade" and that it wanted to "help the company address the challenges it is facing".

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.

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