Activist investor Trian raises stake in P&G to $3 bn
15 February 2017
Activist investor Trian Fund Management, co-founded by Nelson Peltz, Peter May and Ed Garden, on Tuesday reported a $539.5-million investment in health, home and personal care products maker Procter & Gamble, taking its total investment in P&G to more than $3 billon.
The New York-based investor disclosed the investment in a regulatory filing for the period through 31 December, on Tuesday, boosting P&G shares by as much as 4.3 per cent in New York trading.
Procter & Gamble has a market capitalisation of almost $225 billion.
The maker pf personal care and home care products will now increasingly face investor pressure to turn around its business and boost its stock price.
Trian Fund Management LP had, in previous years, targeted companies like PepsiCo Inc and DuPont Co, but, with $3 billion in total investments, this is Trian's biggest bet, according to a person familiar with the matter.
It's unclear what changes Trian, which is known for publishing detailed research reports on its investment targets, will seek at the maker of Tide detergent, Gillette razors and Pampers diapers.
''P&G welcomes investment in our company,'' the Cincinnati company said, after The Wall Street Journal first reported on Trian's investment on Tuesday.
P&G has been slashing costs and shedding dozens of brands to refocus on its biggest businesses. But it has struggled to boost sales growth as it battles a sluggish global economy, price pressures and competition from internet upstarts like the Dollar Shave Club.