P&G continues to review vote tally as Peltz awaits board seat

Nelson Peltz founding partner of Trian Fund Management LP. speak at the WSJD Live conference in Laguna Beach, California
FILE PHOTO - Nelson Peltz founding partner of Trian Fund Management LP. speak at the WSJD Live conference in Laguna Beach, California October 25, 2016. REUTERS/Mike Blake

November 22, 2017

By Sruthi Ramakrishnan

(Reuters) – Procter & Gamble Co <PG.N> is still reviewing a tally of shareholder votes cast at its annual meeting more than a month ago, after a fierce proxy contest narrowly handed activist investor Nelson Peltz a board seat.

The consumer products company said on Wednesday it has not yet decided to launch a formal challenge to the results, which are still preliminary, but is reviewing a count performed by IVS Associates Inc to make sure it is accurate. In response, Peltz’s firm, Trian Fund Management, said it was disappointed that P&G continues to question the outcome, which handed him a victory with a margin of just 0.0016 percent of shares outstanding.

“Regardless of how they voted, P&G shareholders should be concerned that P&G has opted to waste further time and shareholder money contesting the official tabulation of the independent Inspector,” Trian said in a statement. Trian asked P&G to reconsider its decision to review and immediately give Peltz a seat on the company’s board.

Peltz launched his war against P&G management in July, criticizing the company’s lagging stock price and railing against its “suffocating bureaucracy.” From then through Tuesday’s close, P&G shares have risen 1.9 percent.

Immediately after its annual meeting in mid-October, P&G said it had beat Peltz by a slim margin, but IVS’s tally, released a week ago, showed otherwise.

P&G, whose brands include Tide laundry detergent, Crest toothpaste and Pampers disposable diapers, said it was pushing to get a final certified report from the Independent Inspector of Elections as quickly as possible.

Typically during such reviews, lawyers from both sides vet the counting process performed by an independent third-party. If the outcome does not go its way, P&G can launch a formal challenge, though it did not say whether it plans to do so.

(Additional reporting by Uday Sampath in Bengaluru; Writing by Lauren Tara LaCapra; Editing by Bernard Orr and David Gregorio)

  • FoolIggy

    The hubris of P&G’s leaders knows no limit!

    One has to surmise their present efforts are, at minimum, an attempt to protect their “perks, pay, and keep secret their agendas” from someone who would clearly be more interested in creating shareholder value based on why he was elected to the board!

    This alone should send the share price of P&G sliding as retail investors BAIL OUT until such time that there is clear proof that only “hubris” and not CRIMINAL NEGLIGENCE is the ‘insider board’s’ Modus Operandi!

    Something smells in Denmark & hopefully, there is no one related to Bernie Madoff who sits on the existing board as that may have infected the leadership of P&G.

    Hopefully, all issues will soon see the light of day should an ACTIVIST BOARD MEMBER be found to legally have been granted a Board Seat by the very shareholders the present board should BE WORKING FOR!

    P&G sounds like it has its own DEEP STATE & Swamp rats patterned after washington dc!