Ingersoll-Rand PLC : Trian Fund CEO Turned Down Board Seat on Ingersoll-Rand -Filing
06/20/2012| 06:40pm US/Eastern
By Ben Fox Rubin
Trian Fund Management L.P. disclosed in a Securities and Exchange Commission filing that its chief executive, Nelson Peltz, turned down a seat on Ingersoll-Rand Co.'s (IR) board, after the company tried to impose restrictions on the investment fund.
Trian last month disclosed a 7.1% stake in the industrial conglomerate, whose offerings include Trane heating and air-conditioning systems, Schlage door locks and Club Car golf carts.
Trian said that amid deliberations with Ingersoll-Rand, the company extended an unsolicited invitation to Peltz to join its board. After the company put restrictions on the offer, Trian declined to accept it, Trian said. Trian added in the filing that it believes the Ingersoll-Rand and its shareholders would benefit if the investment fund suggested additional directors.
Trian's position in Ingersoll-Rand has been valued at about $900 million and is Trian's largest in a single company. The stake also makes the investment fund one of Ingersoll-Rand's biggest shareholders.
Earlier this week, Trian said it amassed a 5.1% stake in Lazard Ltd. (LAZ), calling the shares "significantly undervalued."
Ingersoll-Rand has struggled against a prolonged slump in residential and commercial construction activity that has weighed on demand for its products.
In April, the company said it swung to a first-quarter profit over a prior-year period weakened by losses tied to its Hussmann refrigerated display case businesses.
Shares closed Wednesday at $39.83 and were up 0.8% after hours. The stock has risen 31% so far this year.
Write to Ben Fox Rubin at email@example.com