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Bill Ackman's Pershing Square hedge fund sold all of its Citigroup (C) shares this week to build...

Bill Ackman's Pershing Square hedge fund sold all of its Citigroup (C) shares this week to build a stake in Procter & Gamble (PG), he tells CNBC's Delivering Alpha audience. “We’re going to take a hard look to see if we can add any value” in taking an activist role with PG, Ackman says, revealing that his fund owns $1.8B in PG stock. PG +0.5% AH.
Comments (12)
  • RAP77
    , contributor
    Comments (348) | Send Message
     
    "activist role," really? or would manipulative role be a better description?

     

    Once Pershing adds value to PG, will they dump it?

     

    Is PG a dinosaur, even though everyone owns some?
    18 Jul 2012, 06:15 PM Reply Like
  • JOHNCARL2
    , contributor
    Comments (4) | Send Message
     
    I was about to invest in P&G stock until I found out Bill Ackman was investing to see if he could "add value" to the company. His method of adding value is more attuned to corporate raiding than improving. He tried his nonsense with Target, trying to get them to sell the properties they owned to bring in immediate cash and then turn around and rent the properties they just sold. Targets board almost tarred and feathered him before rejecting his quick cash ideas. If the P&G board is wise they too will reject his foolish schemes. His ideas will add value to his pockets and destroy the company in the long run. He's a corporate raider not investor. Get him away from P&G.
    18 Jul 2012, 10:14 PM Reply Like
  • mike8599
    , contributor
    Comments (583) | Send Message
     
    Personally I think this will be good for P&G on many levels. There is a reason they have been a laggard and it's not all the fault of the CEOs.
    19 Jul 2012, 07:40 AM Reply Like
  • procter3
    , contributor
    Comments (6) | Send Message
     
    Mike,

     

    It's not all the CEO's fault. But there's a reason they make the big bucks and that is because it's their baby.
    19 Jul 2012, 08:54 AM Reply Like
  • mike8599
    , contributor
    Comments (583) | Send Message
     
    Absolutely.... the CEO takes the major part of the blame, but quite frankly I blame Lafely. His strategies where way off the mark, and were that way for a very long time - it'll take time to recover.

     

    I think Ackman will be good for the stogy culture.
    19 Jul 2012, 09:08 AM Reply Like
  • procter3
    , contributor
    Comments (6) | Send Message
     
    You may be right, Mike about Lafley. Sometimes those types of things don't show up for a while. But I think Bob McDonald was Lafley's choice to replace him, and it seemed like most of the potential CEO candidates left P&G to lead other companies.
    20 Jul 2012, 08:34 AM Reply Like
  • mike8599
    , contributor
    Comments (583) | Send Message
     
    That comment is more troubling to me... it sounds like PG is in a downward spiral, in other words bad performers promote bad performers, which I don't doubt.

     

    I wonder how much of this Pepper takes responsibility for ?
    20 Jul 2012, 08:47 AM Reply Like
  • procter3
    , contributor
    Comments (6) | Send Message
     
    After seeing what P&G has done with the Gillette business, letting a small company like Energizer (comparatively speaking) take its market share boggles the mind; Gillette vigorously defended market share. Someone like Ackman is needed to fix this bloated company. I do not trust Bob McDonald to turn this situation around.
    19 Jul 2012, 08:50 AM Reply Like
  • procter3
    , contributor
    Comments (6) | Send Message
     
    I do not trust Bob McDonald to turn this bloated company around. A huge restructuring is needed and now. The company is too inbred to have an insider like McDonald lead this effort. Just look at what P&G has done to the Gillette business. They have let a tiny company like Energizer gain market share on the blade/razor business. Gillette as an independent company vigorously defended market share on blades. Someone without internal ties like Ackman is needed to turn things around.
    19 Jul 2012, 08:53 AM Reply Like
  • GeorgeTS
    , contributor
    Comments (78) | Send Message
     
    Is Chainsaw Al out of the can yet?
    21 Jul 2012, 12:42 AM Reply Like
  • mike8599
    , contributor
    Comments (583) | Send Message
     
    PG had / has a bad habit of taking the best in a company and trying to convert it to the P&G way, rather than exploit it. Gillette is a very good example of this.... Gillette was a "no-brainer" as Lafely said at the time of the acquisition, but it very poorly executed.
    21 Jul 2012, 08:36 AM Reply Like
  • procter3
    , contributor
    Comments (6) | Send Message
     
    Very well said, Mike.
    21 Jul 2012, 12:51 PM Reply Like
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