Activist Nelson Peltz wins more backing in battle against Procter & Gamble
By Sharon Terlep
Proxy adviser ISS recommends the consumer-products company add Nelson Peltz to its board
Less than two weeks before the largest proxy vote in history, activist Nelson Peltz got a key boost in his high-profile fight against Procter & Gamble Co (PG) .
Institutional Shareholder Services Inc., the largest proxy-adviser firm, recommended on Friday that P&G shareholders put the 75-year-old investor on the board over the company's protests. Another proxy adviser, Glass Lewis & Co., came out in favor of Peltz last week.
"There are several signs that the board could benefit from additional shareholder perspective and outside" consumer-products experience, ISS wrote in its 25-page report, which helps guide mutual funds and other institutional investors on how to cast their votes.
The two sides have traded barbs for weeks about whether Mr. Peltz deserves a seat on the consumer-products giant's board. Mr. Peltz's Trian Fund Management, which is one of the company's biggest shareholders with a 1.5% stake valued at $3.5 billion, has been amassing support.
The activist has been amassing support in recent weeks. Another top shareholder, Yacktman Asset Management, which owns about 15 million shares of P&G, or a 0.6% stake, said earlier this month it is backing Mr. Peltz. Five former board members of H.J. Heinz Co. wrote a letter to P&G's board in support of Mr. Peltz, who won a seat on the ketchup-maker's board in 2006 after a proxy fight.
An expanded version of this report appears at WSJ.com (https://www.wsj.com/articles/proxy-adviser-iss-backs-activist-trian-in-procter-gamble-board-fight-1506712463?link=mktw).