Yesterday, 10:45 AM
- Shareholder proxy firm ISS recommends activist investor Nelson Peltz for a spot on DuPont's (DD +3.1%) board, plus one other nominee put forward by Peltz's Trian Fund Management.
- "This is not a broken company - but there is compelling evidence that the dissidents are onto something in their critique," ISS says following last week's release of disappointing Q1 results.
- DuPont and Trian have tried to make offers to settle the increasingly bitter proxy fight over the company's future, but both sides have been steadfast on whether Peltz deserves a seat on the board.
Wed, Apr. 22, 2:25 PM
- DuPont (DD +0.9%) agrees to acquire a microbiome discovery company Taxon Biosciences in a move it hopes will give it an edge in an emerging agricultural market for biological crop products.
- DuPont does not say how much it is paying but says the California-based company brings a "broad intellectual property estate" that will contribute to new DuPont seed treatments, and foliar and soil applications for row crops, fruits and vegetables.
- DuPont executive VP Jim Borel tells Reuters he expects new products in the company's biologicals pipeline to start hitting the market within about five years, adding that the biologicals market is growing rapidly "and it's an area where science can make a real difference."
Tue, Apr. 21, 3:13 PM
- DuPont's (DD -2.7%) disappointing Q1 revenue and reduced 2015 earnings outlook is expected to provide fresh ammunition to Nelson Peltz in his campaign to split up the company.
- Peltz's Trian Fund will point to the lower outlook - DuPont now sees FY 2015 EPS at the low end of $4.00-$4.20 vs. $4.06 analyst consensus estimate - as further evidence that the company fails to meet its financial targets, SunTrust's James Sheehan says, adding that the profit warning would "likely intensify the debate."
- DuPont, which gets ~60% of its sales from outside the U.S., blames a stronger dollar for the 9% drop in Q1 sales and reduced profit outlook, but says cost-cutting efforts are helping the bottom-line.
- Leading shareholder proxy firm ISS is meeting with Peltz and DuPont on Wednesday and is expected to make its recommendation by the end of the month; the battle will come to a head on May 13, when DuPont holds its annual shareholder meeting.
Tue, Apr. 21, 7:25 AM
- Net income of $1.03B vs. $1.44B in the same quarter a year ago. Excluding pension costs and other items, operating earnings were $1.34 a share, down from $1.58 per share, the prior year.
- Cost reductions increased earnings by $0.10 per share, however, helping to make up for a 10% sales drop at DuPont's (NYSE:DD) agriculture unit, the company's largest business.
- Net sales fell 9% to $9.17B, primarily due to a decline in volumes and negative currency impacts.
- DuPont says it's now on track to spin off its performance chemicals unit the middle of this year and expects to report full-year operating earnings at the low end of its $4.00-$4.20 per share range (below analyst projections of $4.46).
- The results also come just weeks ahead of a shareholder vote on adding nominees from Trian Fund Management, headed by Nelson Peltz, who has argued the company's share value could effectively double if it split itself into three.
- DD -1.6% premarket
- Q1 results
Tue, Apr. 21, 6:14 AM| Comment!
Tue, Apr. 21, 6:07 AM| 2 Comments
Mon, Apr. 20, 5:30 PM
Mon, Apr. 6, 10:38 AM
- DuPont (DD +0.4%) reiterates via a new investor presentation that it opposes efforts by Trian Fund Management to replace four directors, calling the activist investment firm "value destructive."
- DuPont last month offered to add John Myers, a Trian nominee and former CEO of GE Asset Management, to the board as part of a “constructive resolution,” but DuPont now appears to remove that offer, saying Trian’s efforts to replace board members are “not in the best interests of shareholders."
Mon, Mar. 30, 8:25 AM
- DuPont (NYSE:DD) has approved changes to the corporate governance structure at The Chemours Company, which remains on on track to spinoff in mid-2015.
- Chemours’ classified board structure will be submitted to a shareholder vote at its first Annual Meeting in 2016. If the classified structure is not approved by shareholders at the meeting, the unit will immediately declassify its Board such that all directors would be up for annual election beginning with the 2017 Annual Meeting.
- The ownership threshold for shareholders to call special meetings has also been lowered to 25%.
Mon, Mar. 30, 1:51 AM
- Although it has not revealed what compromise it is seeking, Fidelity Investments, DuPont's (NYSE:DD) sixth largest shareholder, has put pressure on activist Trian Fund Management and the chemical conglomerate to reach a settlement over their "detrimental" proxy fight.
- Trian, which owns a 2.7% stake in DuPont, is pushing for the appointment of four of its own directors, including Nelson Peltz, at the company's annual shareholder meeting on May 13.
- Previously: DuPont board battle heats up (Mar. 23 2015)
Mon, Mar. 23, 12:35 PM
- Origin Agritech (SEED +24.5%) soars in a move attributed to a WSJ article discussing China's desire to develop a local seed company, potentially through a renewed bid for SEED, which controls the rights to China's first genetically modified corn.
- SEED last year rejected a $60B takeover bid from China's state-backed Hunan Xindaxin but its top executives believe another attempt is coming, as China looks to find a way to can keep foreign giants such as Monsanto (NYSE:MON), DuPont (NYSE:DD) and Syngenta (NYSE:SYT) at bay while significantly increasing the country’s spending on R&D.
- China is the world’s second largest seed market but limits foreign producers to minority stakes in joint ventures, and its domestic seed makers are too small and scattered for the government to corral in pursuit of controlling the biotechnology that underpins the competitive power of global seed manufacturers.
Mon, Mar. 23, 7:03 AM
- DuPont (NYSE:DD) has filed definitive proxy materials with the SEC in connection with its Annual Shareholder Meeting, scheduled for May 13, 2015.
- Excerpt from the filing: "Your Board is a powerful advocate for investors with a proven track record of delivering superior value...we strongly recommend that you elect these world-class leaders by voting the enclosed WHITE proxy card today "FOR" all 12 of DuPont's qualified and experienced director nominees."
- The company has been battling Nelson Peltz's Trian Fund Management, which has stated its intention break up the chemical giant by nominating four of its own directors to DuPont's Board.
Fri, Mar. 20, 7:35 AM
- JinkoSolar (NYSE:JKS) has signed a strategic collaboration agreement with DuPont (NYSE:DD) to further the growth and adoption of efficient and reliable solar generated electricity.
- Areas of potential collaboration: technical development, improvements in solar cells and panels and co-marketing efforts.
- JKS +2.1% premarket
Mon, Mar. 16, 2:38 PM
- DuPont (DD -4.1%) slides to its lows of the day following a two-notch downgrade to Underperform from Buy at BofA Merrill.
- DuPont is contending with several challenges, including pricing pressures as some farmers buy less expensive seeds, a likely decline in total U.S. corn acreage, and elevated inventories of crop protection chemicals, BofA analyst Kevin McCarthy believes.
- In chemicals, ethylene margins are likely to fall this year, while TiO2 prices continue to drop, all while the strength of the U.S. dollar is likely to weigh on the company's overall results, the analyst says.
- McCarthy says the biggest risk to its cautious posture is the ongoing engagement of Trian, which could lead to acceleration of cost cuts and possibly further reshape the portfolio or lead to a break-up of DuPont.
- The firm also cuts its EPS estimates for 2015 and 2016 to a respective $4 and $4.30, both falling below the consensus estimate of $4.09 for 2015 and $4.56 for 2016.
Mon, Mar. 16, 10:06 AM
- Despite the rejection of four of its nominees to DuPont's (DD -2%) board, Trian Fund Management said there was still "strong interest" among large DuPont shareholders for a representative from the hedge fund to join the chemical conglomerate's board.
- DuPont said on Friday that it was prepared to add only one of the nominees suggested by the hedge fund, John Myers, to its board.
- "We are also pleased with the positive feedback that we have received from DuPont stockholders regarding all of Trian's nominees," the hedge fund said in a regulatory filing on today.
Mon, Mar. 16, 7:59 AM
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E I du Pont de Nemours & Company is a science and engineering company that offers products and patents applications for agriculture, nutrition, electronics and communications, safety and protection, home and construction, transportation and apparel.
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