DuPont investors reject Peltz-led board seat battle

By Covestor

There was a bit of interesting drama at DuPont’s (DD) recent annual meeting.

In recent weeks, there has been a contentious contest for 4 board positions initiated by activist shareholder Nelson Peltz.

Continue Reading Below

Proxy Battle

It is his position that there is considerable value to be realized in cost cuts and the restructuring or splitting of operations.

The company has pointed to its own restructuring initiatives and strong relative financial and stock market performance over the past 5 years.

Management Prevails

Shareholders sided with management with the most surprising development being that the Peltz group did not pick up a single board seat.

This recent weakness in the stock price is indicative of selling by those hoping for the Peltz related scenario versus a more long-term proposition offered by management.

Holding Position

Despite today’s developments and stock price weakness, Timberline is currently retaining the DuPont position.

Going forward, I believe management is going be under the microscope and very accountable for the case it has made for themselves.

If management comes up short, Mr. Peltz is likely going to be around with a plan that many have already found to be attractive.

The investments discussed are held in client accounts as of May 14, 2015. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.

//

Subscribe to our once-weekly email newsletter and get the best posts delivered to you in one convenient place, to browse at your leisure://

The post DuPont investors reject Peltz-led board seat battle appeared first on Smarter InvestingCovestor Ltd. is a registered investment advisor. Covestor licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for Covestor models available upon request. Additional important disclosures available at http://site.covestor.com/help/disclosures.

Continue Reading Below