Procter & Gamble Co (NYSE:PG) is in an proxy fight with activist investor Trian Fund Management.
In response, Cincinnati-based P&G said it has "maintained an active and constructive dialogue" with the Peltz-led partnership since Trian made its investment in the company.
Trian also said if elected, Peltz's "first action would be to propose that the board immediately re-appoint to the board whichever current director has not been re-elected".
Nevertheless, the activist investor will now be seeking support from other shareholders and could highlighted the stock's poor performance over the years. However, the two sides have agreed to take various steps to improve performance, including cutting costs and a management restructuring initiative. The company had a market value of $222.77 billion, as of Friday's close.
In a bid to boost profits even as sales remain stagnant, P&G has sold unprofitable brands, including 41 beauty brands to Coty Inc (coty), and focused on core brands such as Tide, Pampers and Gillette.
"We need a game-changing attitude at P&G", Peltz told WSJ.
"We believe that P&G has an overly complex organizational structure and a slow moving and insular culture", Trian Partners said in a notice to company shareholders.
P&G said in an email on Monday that its board was confident that the changes being made by the company were producing results and expressed complete support for its strategy, plans, and management.
Following news of the fight between P&G and Trian, shares of the consumer products company increased slightly in early Monday trading. P&G is expected to hold its annual shareholder meeting in October.
However, absent strong growth more than five years into the strategy, P&G represented a large target for dissatisfied Wall Street investors.