The battle for an activist investor to join the board of Procter & Gamble has taken a dramatic U-turn following a recount of votes.
Nelson Peltz, CEO of investment firm Trian Partners, had seemingly lost narrowly in his attempt at joining the hygiene products manufacturer a month ago. Procter & Gamble announced his failure in October following its 2017 annual general meeting.
However, a recount has found Peltz to have been elected by a 0.0016% margin, which amounts to 42,780 shares.
Procter & Gamble stated: “The results are still preliminary and are subject to a review and challenge period during which both parties will have the opportunity to review the results for any discrepancies.”
The company had previously stated it was “encouraged” by the earlier result, and that shareholders saw it as “a profoundly different, much stronger, more profitable company than just a few years ago”.
Following the recount Trian said it “strongly urges” P&G to accept the result “and not waste further time and shareholder money contesting the outcome of the annual meeting”.
“Trian believes Nelson Peltz’s extensive experience and track record of improving performance at consumer companies will bring significant value to the P&G board and help create the right environment for generating breakthrough ideas.”
Peltz and Trian have been involved in a long dispute with Procter & Gamble about the direction of the business, with the investment firm calling for it to separate into three business units run by a “lean” holding company.
General Electric’s recently appointed chairman and CEO John Flannery invited Trian chief investment officer Ed Garden on to GE’s board last month as part of a company shakeup.