Investor’s ideas to boost shareholder value would be ‘value destructive’, P&G says
Bengaluru — Procter & Gamble (P&G) on Thursday said activist investor Nelson Peltz’s plan to boost shareholder value would result in higher costs, lower profits and another restructuring that could lead to a breakup of the company. Peltz’s Trian Partners released its long-awaited proposal on Wednesday, and called for P&G to be organised into "three largely autonomous business units under a lean holding company". "Peltz’s suggestions would be value destructive, and we believe it represents another example of his misguided view of P&G’s business," P&G said in a statement. P&G said it had studied several organisational structures, including the one proposed by Peltz, and concluded it would result in higher costs, lower efficiency, reduced profits, and an added layer of management complexity. Trian, P&G’s fifth-largest shareholder, has been locked in a prolonged battle with the consumer products conglomerate, raising investor hopes of a break-up of the company. In July, Peltz made publi...
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