Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Clorox Co    CLX

CLOROX CO (CLX)
Mes dernières consult.
Most popular
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Trian takes off the gloves, aiming to put Peltz on P&G's board

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/17/2017 | 11:39pm CEST
Nelson Peltz founding partner of Trade Fund Management LP. speak at the WSJD Live conference in Laguna Beach, California

Activist investor Nelson Peltz is seeking a seat on Procter & Gamble Co's (>> Procter & Gamble Company) board, taking public his frustrations with the company's lagging stock price and railing against its "suffocating bureaucracy."

Activist investor Nelson Peltz is seeking a seat on Procter & Gamble Co's (>> Procter & Gamble Company) board, taking public his frustrations with the company's lagging stock price and railing against its "suffocating bureaucracy."

Trian Fund Management LP on Monday announced the nomination of its chief executive and co-founder Peltz, launching the largest proxy fight ever against a $223 billion consumer products juggernaut that sells everything from Tide detergent and Gillette razors to Pampers diapers.

Peltz's nomination comes after five months of behind-the-scenes discussions between Trian and P&G's top executives and board, according to the company's proxy filing. At one point, the two sides nearly struck a truce in May that would involve P&G laying out certain performance metrics over the next year.

But any sign of an agreement was absent on Monday when both came out swinging. The 180-year-old company, founded on a hand-shake agreement by a soap and a candle maker, issued a statement strongly backing its board and strategic plan. See Breakingviews column:

Trian, which owns about $3.3 billion of P&G's stock, or 1.5 percent of the company, has until an October annual meeting to convince fellow shareholders that Peltz deserves to be voted onto the board.

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.

Trian's previous battle with a consumer goods conglomerate was with PepsiCo Inc (>> PepsiCo), where it pressured the company to spin off its beverage business from its snacks division, a campaign that the company never heeded though it did hand the investor a board seat in 2015 to make peace. (http://reut.rs/2uvu0ea)

That campaign began with Trian advocating Peltz for Pepsi's board and ended with industry veteran William Johnson joining as Trian's representative.

In a CNBC interview on Monday, Peltz, 75, talked more about Trian's track record with companies such as H.J. Heinz than actual operational changes needed at P&G. Peltz railed against the company's "suffocating bureaucracy," but noted he was on good terms with CEO David Taylor.

Trian said it wants P&G to cut costs more efficiently, and that it does not want to replace Taylor, any board directors, or to break-up the company.

Since Taylor became CEO in November, 2015, P&G's stock has gained 0.3 percent. In contrast, the S&P 500 Household Products index <.SPLRCPROD>, which includes Kimberly-Clark Corp (>> Kimberly Clark Corp) and Clorox Co (>> Clorox Co), has risen 12 percent over the same period.

P&G's quarterly organic sales, which excludes acquisitions and divestitures, has fallen just once during his one and half years at the helm. For this year, the consumer goods giant expects a 2-3 percent rise in organic sales growth.

BATTLE LINES

The Trian-P&G battle comes as activist investors, emboldened by years of successful campaigns for changes at corporations across the U.S. and abroad, use their growing coffers to seek bigger targets. 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 (>> DuPont) in 2015.

P&G's proxy filing, disclosed on Monday, shows that Trian's dialogue with the company goes back to Feb. 16, when Peltz called Taylor shortly after disclosing the stake to make the introduction and set up an in-person meeting.

"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. "I like the man."

Trian said in a press release that its bid to get Peltz on the board centres on P&G's continuing underperformance, costs, complexity and culture. (http://bit.ly/2t7h62c)

OCTOBER ANNUAL MEETING

With P&G's annual meeting usually held in October, the two sides have roughly three months to discuss ways to avoid a shareholder vote on Peltz. If elected, Trian has said it wants P&G to expand the board to 12 members rather than have Peltz replace a sitting director.

P&G's current board has six past or current CEOs, including American Express CEO Kenneth Chenault and Hewlett Packard Enterprise CEO Meg Whitman.

"P&G has a best-in-class board of directors that is fully supportive of and actively engaged in overseeing the company’s transformation," the company said on Monday.

P&G's proxy filing noted that last Tuesday, in a meeting between Trian and members of P&G's board, Trian said it was moving ahead to elect Peltz because the company was not moving fast enough to improve its performance.

P&G directors at the meeting said they too were not happy with the performance, but that they felt that Trian’s representation on the board was unnecessary in light of recent initiatives undertaken by the company," the filing said.

In a bid to boost profits even as sales remain stagnant, P&G has sold unprofitable brands, including 41 beauty brands to Coty Inc (>> Coty Inc), and focused on core brands.

However, the efforts have failed to boost the stock much beyond the level where it traded at the beginning of this year.

Trian said that P&G's last cost-cutting plan, launched in 2012, failed to impact profit or sales growth.

Barclays noted on Monday that Trian is working with former P&G CFO Clayt Daley, a consultant on the campaign who could become a potential board candidate to replace Peltz as part of the negotiations.

(Additional reporting by Siddharth Cavale in Bengaluru; Editing by Saumyadeb Chakrabarty and Bernard Orr)

By Michael Flaherty and Sruthi Ramakrishnan

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CLOROX CO
09/25 CLOROX : Releases 2017 Integrated Annual Report
09/18 CLOROX : reg; Total 360® System Awarded the Professional Cleaning Industry&rsquo..
09/18 CLOROX : reg; Total 360® System Awarded the Professional Cleaning Industry's Top..
09/13 CLOROX : Declares Regular Quarterly Dividend of 84 Cents Per Share
09/13 CLOROX : Emmy®-Nominated Actress Felicity Huffman Discusses How ‘Being Hum..
09/12 CLOROX : Emmy®-Nominated Actress Felicity Huffman Discusses How 'Being Human Tak..
09/06 CLOROX : to Discuss Progress on 2020 Strategy at Analyst Day on Oct. 5
08/28 INSIDER TRADING ACTIVITY CLOROX COMP : CLX) – SVP Sold 9,223 shares of Sto..
08/28 INSIDER TRADING ACTIVITY CLOROX COMP : CLX) – EVP Sold 9,861 shares of Sto..
08/24 CLOROX CO : Featured Company News - Medline Industries to Buy Clorox's Aplicare ..
More news
News from SeekingAlpha
09/21 Consumer staples underperform after Dr Pepper warning
09/21 BUYING STOCKS FOR A DIVIDEND GROWTH : Postscript A
09/18 THE IM-CAPITAL STRENGTH 20-STOCK UNI : Update September 2017
09/16 1 Top Stock For 2017 And Beyond
09/13 Clorox declares $0.84 dividend
Financials ($)
Sales 2018 6 149 M
EBIT 2018 1 176 M
Net income 2018 744 M
Debt 2018 1 708 M
Yield 2018 2,60%
P/E ratio 2018 22,91
P/E ratio 2019 21,49
EV / Sales 2018 3,00x
EV / Sales 2019 2,93x
Capitalization 16 757 M
Chart CLOROX CO
Duration : Period :
Clorox Co Technical Analysis Chart | CLX | US1890541097 | 4-Traders
Technical analysis trends CLOROX CO
Short TermMid-TermLong Term
TrendsBearishBearishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 16
Average target price 136 $
Spread / Average Target 4,5%
EPS Revisions
Managers
NameTitle
Benno O. Dorer Chairman & Chief Executive Officer
Dawn C. Willoughby Chief Operating Officer & Executive VP
Stephen M. Robb Chief Financial Officer & Executive Vice President
Manjit Singh Chief Information Officer & Senior Vice President
Robert W. Matschullat Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
CLOROX CO8.17%16 757
RECKITT BENCKISER-1.15%64 621
UNILEVER INDONESIA TBK PT--.--%28 613
CHURCH & DWIGHT CO., INC.9.73%12 129
LION CORP7.93%5 527
KOBAYASHI PHARMACEUTICAL CO LTD27.15%4 658