Jul. 27, 2015, 5:30 PM
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Jul. 15, 2015, 9:57 AM
- Despite losing a high-profile proxy battle in May, Trian's Nelson Peltz said he's still holding on to DuPont (DD -0.2%) stock as he would rather be "rich than right."
- But the proxy decision "has been a significant loss for shareholders," declared Peltz at the Delivering Alpha Conference in New York, noting that the stock has fallen from around $80/share at the time of the vote to around $59/share.
- The biggest mistake was that I waited "too long," Peltz said. "If the election was held today, what do you think the results would be?"
Jul. 2, 2015, 3:29 PM
- DuPont (DD -2.4%) drops to a new 52-week low after completing the spinoff of its Chemours performance chemicals business, which has been criticized by many analysts.
- RBC maintains its Sector Perform rating but cuts its price target to $64 from $69, saying DD still faces significant forex and other headwinds in many of its remaining businesses; the firm believes DD is fully valued at 9.7x its new post-spin estimated 2016 EBITDA.
- Wells Fargo has a somewhat more favorable view on the transaction, believing it enables DD to dampen earnings cyclicality in its quest to be a science company
Jul. 1, 2015, 7:15 AM
- DuPont (NYSE:DD) has completed the separation of its Performance Chemicals segment through the spin-off of The Chemours Company.
- Chemours will begin trading the "regular way" today on the NYSE under the symbol "CC".
- DuPont common stockholders will receive one share of common stock of Chemours for every five shares of DuPont stock they held as of June 23.
Jun. 24, 2015, 12:41 PM
- DuPont (DD -2.6%) is the Dow's biggest percentage loser after J.P. Morgan provided a downbeat assessment of Chemours, the performance chemicals division DuPont is spinning off.
- The firm starts coverage of Chemours with an Underweight rating, believing the spinoff is a "fully-valued security," and that the company will decide to cut its dividend.
- JPM expects Chemours' cash flow generation to be negligible for 2015, so the company would have to borrow to pay the initial quarterly dividend of $100M and is not likely to generate enough capital to sustain such a dividend payment.
- Credit Suisse agrees, adding that Chemours is saddled with large legal liabilities, mainly from production of fluoropolymer products such as Teflon, which faces suits and environmental fines of $295M with the potential to more than double.
Jun. 19, 2015, 8:22 AM| Jun. 19, 2015, 8:22 AM | 4 Comments
Jun. 11, 2015, 9:33 AM
- UBS feels investors could value Dupont's (DD +0.2%) spin-off, Chemours, at an even higher yield initially than Tronox, its likely closest peer. The latter currently trades at a 5.8% yield.
- DuPont’s $1.94 annual dividend will be split $0.44 cents to Chemours ($2.20 per whole Chemours share, as each DuPont shareholder will receive one Chemours share for every five shares of DuPont held) and $1.50 will remain at DuPont.
- The firm rates DuPont at Neutral with a $72 price target, reflecting $66 for the new DuPont and $6 for Chemours.
May 19, 2015, 11:02 AM
- Dupont (DD +1.6%) spent $15M over the past few months to keep Trian Fund Management's candidates off of its board, leading some to question whether the company can be declared the total winner of the recent battle. Trian spent $8M.
- Although it seems like a hefty price tag, the amount is quite typical in perilous proxy wars.
- Heinz paid $14M to defend itself against Trian in 2006, while CSX spent $22M to fend off advances from Christopher Hahn and 3G Capital Partners in 2008.
- Previously: DuPont-Trian showdown comes to a close (May. 13 2015)
May 14, 2015, 3:36 PM
- DuPont (DD +0.5%) is upgraded to Neutral from Underperform with a $76 price target at BofA Merrill, which expects DD to emerge from its proxy fight with Nelson Peltz as a leaner, stronger company.
- BofA also cites Monsanto's recent bid for Syngenta, which could launch an opportunity for industry consolidation in the crop protection chemicals and seeds segment.
- The firm maintains its 2015 EPS estimate while its estimate for 2016 to reflect the weakening the U.S. dollar and the potential for accelerated cost cuts at the company.
- Earlier: DuPont's victory over Trian is not good news, Citi says
May 13, 2015, 2:15 PM
- DuPont (DD -6%) remains sharply lower after Nelson Peltz's Trian Fund Management lost its proxy fight and failed to get any of its nominees elected to the company's board, and Citigroup analysts agree that it's not good news.
- Although Trian lost, Citi thinks DuPont will be under greater shareholder scrutiny going forward even though the result was a big win for CEO Ellen Kullman and management, with cost reductions and share repurchases taking the primary focus in the near-term.
- DuPont also "may have to play more offense" in agriculture after spending the last several months playing defense in the proxy battle; the firm says it sees logic in combining DD's and Dow Chemical's (NYSE:DOW) ag businesses.
- Trian may not be patient and may exit its position over time, offering a potential overhang on DD shares, Citi says.
May 13, 2015, 9:15 AM
May 13, 2015, 9:07 AM
- It appears that Trian nominees were not elected to the DuPont (NYSE:DD) Board at today's annual meeting of stockholders.
- "The vote was close. We greatly appreciate the support we received from the vast majority of institutional stockholders...as well as the leading proxy advisory firms, who all recognize the need for change at DuPont," Trian said in a statement.
- DD -6.2% premarket
May 13, 2015, 8:40 AM
- DuPont (NYSE:DD) was seen winning its proxy fight against activist investor Nelson Peltz, sources told CNBC, although the vote is said to be very close.
- The annual shareholder meeting at DuPont's Chestnut Run headquarters has begun.
- Previously: DuPont-Trian battle comes to a head (May. 13 2015)
- DD -3.1% premarket
May 13, 2015, 7:10 AM
- The fight for DuPont's (NYSE:DD) future will reach its climax today when shareholders learn whether the company was able to hold off a power grab by activist Nelson Peltz.
- The annual shareholder meeting is scheduled for 8:30 a.m. ET.
May 12, 2015, 2:02 AM
- The prospects for a last-minute settlement with DuPont (NYSE:DD) are "dim", Trian's Nelson Peltz told CNBC on Monday.
- DuPont has refused to add Peltz to its board and has rejected his demand to split the company's volatile materials business from its more stable units.
- Shareholders will vote on whether Peltz and several other Trian nominees should join the firm's board on May 13.
May 7, 2015, 9:57 PM
- California pension giant Calpers has cast its shares in favor of DuPont (NYSE:DD) in the company's proxy fight with Nelson Peltz's Trian Fund, voting its 6.15M shares in favor of the company's slate.
- Calpers on its website cites the performance of DuPont's stock and concerns about Trian's "relatively short term" interest in the company, and praised DuPont for steps it has taken to cut costs and spin off its large performance chemicals business.
- On its side, Trian has Calstrs, the other large California pension operator, pushing DuPont alongside the activist fund.
E.I. du Pont de Nemours & Co. science-based products and services company. It operates through seven segments; Agriculture, Electronics & Communications, Industrial Biosciences, Nutrition & Health, Performance Chemicals, Performance Materials, Safety and Protection. The Agriculture segment... More
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