Recent Activist Activity.

AuthorMcCarthy, Kelly
PositionACTIVIST INVESTORS

Procter & Gamble Co.

Initially it looked like Procter & Gamble Co. (P&G) shareholders rejected Trian Fund Management LP's bid to put activist investor Nelson Peltz on the consumer products company board despite support from the top three shareholder advisory firms--Egan-Jones Ratings Co., Glass Lewis & Co. and Institutional Shareholder Services Inc.

But in a recount, Peltz, according to preliminary results at presstime, narrowly won a seat. Peltz's fund, Trian, which owns a $3.5 billion stake in P&G, had initially deemed the vote tally "too close to call" and Peltz didn't concede.

It's estimated that Trian and P&G combined spent anywhere from $60 million to $100 million, making this proxy battle the biggest and most expensive in history.

After the recount,Trian said in a statement that Peltz, "will be a strong voice for shareholders in the boardroom, and we are confident it will lead to a brighter future for P&G."

Automatic Data Processing Inc.

Peltz is not the only hedge fund manager left on the sidelines this year. Activist investor William 'Bill' Ackman, CEO and portfolio manager of Pershing Square Capital Management, fumbled in his bid to gain a board seat at Automatic Data Processing Inc. (ADP) for himself and proposed outside candidates Veronica Hagen and Paul Unruh. That's the end of the story, right?

Not so fast. Soon, the name-calling began. Ackman, whose fund owns an 8.3% stake in ADP, suggested ousting the organization's top leader and called the business outsourcing company's 10-person board "insular" while ADP CEO Carlos Rodriguez, fired back, saying billionaire Ackman was a "spoiled brat" for requesting an extension on the nomination deadline. All bets are off in this bitter battle.

Meanwhile, advisory firm Glass Lewis & Co. recommends ADP shareholders vote to elect Hagen, Unruh and Ackman. This despite Ackman's failed strategies with Herbal Life, in which the hedge fund tycoon recently gave up his $1 billion short bet, not to mention Pershing Square's recent $142 million paper loss from Chipotle Mexican Grill.

General Electric Co.

In the wake of recent in-house shakeups at General Electric Co. (GE), new CEO and chairman John Flannery approved the appointment of Edward Garden to its board, just as veteran director Robert Lane, following 12 years of board service, exited into retirement citing health reasons.

Garden, chief investment officer and a founding partner of Trian Fund Management which, as of late June, according to...

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