Procter & Gamble urges shareholders to vote against Peltz

NEW YORK — Procter & Gamble is hitting back at activist investor Nelson Peltz, saying in a letter Tuesday that he's not entitled to a board seat just because he wants it.

Peltz's hedge fund has a 1.5 percent stake in the consumer products company. He has used that position to push for a seat on the board to help reverse what he says is P&G's disappointing financial performance over the last decade.

In its letter, P&G urged shareholders to vote against Peltz, saying he has offered no new actionable ideas for the company.

"'Why not?' appears to be the extent of Mr. Peltz's reason for board membership," P&G wrote in a letter signed by CEO David Taylor. "This is simply not a sufficient standard. Joining P&G's board is not an entitlement."

Trian Fund Management, Peltz's hedge fund, declined to comment Tuesday. Trian sent its own letter to shareholders on Monday urging them to elect Peltz to the board.

The Cincinnati-based company's annual meeting is slated for Oct. 10.

P&G, whose brands include Tide detergent and Crest toothpaste, said it is working on restructuring its business and cutting costs.

Shares of Procter & Gamble Co. rose 39 cents to $91.22 in afternoon trading Tuesday.

Must Read

Battle for downtown Sao Paulo pits squatters against mayor

Jul 12, 2017

Battle for downtown Sao Paulo: Occupants of city's squats want affordable housing, while mayor wants a world-class city with center to match

US pending home sales fell in November

Dec 28, 2016

Fewer Americans signed contracts to buy homes in November

Ask Brianna: How can I stay on budget and still hang out?

Feb 15, 2017

You can live frugally and still have fun with your friends, if you're willing to be candid and creative about get-togethers that won't break the bank

People also read these

Battle for downtown Sao Paulo pits squatters against mayor

Jul 12, 2017

Battle for downtown Sao Paulo: Occupants of city's squats want affordable housing, while mayor wants a world-class city with center to match

US pending home sales fell in November

Dec 28, 2016

Fewer Americans signed contracts to buy homes in November

Ask Brianna: How can I stay on budget and still hang out?

Feb 15, 2017

You can live frugally and still have fun with your friends, if you're willing to be candid and creative about get-togethers that won't break the bank