Trian Details Its Case for Changes at P&G in White Paper

By Sharon Terlep and David Benoit Features Dow Jones Newswires

Activist investor Nelson Peltz on Wednesday laid out a detailed case for why Procter & Gamble Co. should give him a board seat, painting a picture of a company impenetrable to outsiders and incapable of navigating the changing consumer landscape.

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In a 94-page presentation, Mr. Peltz's Trian Fund Management LP criticizes the company as having lost its position as a leader and settled for "mediocrity," urging a restructuring of its businesses, the hiring of outsiders, and branching out into smaller and local brands to attract coveted millennial shoppers.

The blueprint is the latest salvo in Mr. Peltz's attempt to win a board seat at the maker of Tide and Pampers, the largest company to ever face a proxy fight. It is Trian's response to the company's monthslong argument that Mr. Peltz brings no new ideas to the table and therefore hasn't earned a seat.

Both sides are courting investors who are set to decide at the company's Oct. 10 shareholder meeting whether to add Mr. Peltz to the board. P&G executives say the company already is bringing in outsiders, simplifying its governing structure and cutting costs to free up cash to create and market new products.

"The problem is that they have lost and are continuing to lose market share," Mr. Peltz said in an interview last week. "Once you've had a consumer and he's left you, it's very hard to bring that consumer back."

P&G has said Mr. Peltz's ideas are either ill-informed or retreads of work that is already under way. "We're already doing something and he's jumping on and saying, 'Do more of it,'" P&G Chief Executive David Taylor said in an interview last week.

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Write to Sharon Terlep at sharon.terlep@wsj.com and David Benoit at david.benoit@wsj.com

(END) Dow Jones Newswires

September 06, 2017 17:50 ET (21:50 GMT)