Tue, May 19, 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)
Thu, May 14, 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
Wed, May 13, 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.
Wed, May 13, 9:15 AM
Wed, May 13, 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
Wed, May 13, 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
Wed, May 13, 7:10 AM
Tue, May 12, 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.
Thu, May 7, 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.
Mon, May 4, 6:35 PM
- Syngenta (NYSE:SYT) fell 7.6% in today's trade, giving up some but not all of its 16% gain on Friday that was sparked by talk that Monsanto (NYSE:MON) had approached the company about a takeover.
- The biggest concern for regulatory approval may involve what would be an unprecedented market share in soybeans and corn seeds for the combined company, and analysts say SYT’s operations in those areas would appeal to a range of buyers including Dow Chemical (NYSE:DOW), DuPont (NYSE:DD), BASF (OTCQX:BASFY, OTCPK:BFFAF) and Bayer (OTCPK:BAYZF, OTCPK:BAYRY).
- Colin Isaac of Atlantic Equities says the deal he always expected to happen is a DuPont purchase of Dow's agriculture unit; CEO Andrew Liveris has suggested Dow is open to divesting the unit, and MON's becoming a much stronger competitor after an SYT takeover could be a catalyst for Dow to more seriously consider exiting the business, which Issac says would be prime pickings for DuPont and its Pioneer seed business.
- A $19.5B bid by DuPont for Dow’s ag sciences business could generate a 7% return on invested capital, according to a report by Laurence Alexander at Jefferies, while adding that such a move is less likely until agricultural markets improve from current trough levels.
Thu, Apr. 30, 3:44 PM
- DuPont (DD -1.5%) settles a long-running trade secrets case against South Korea-based Kolon Industries involving fiber used to make Kevlar bulletproof vests, with the South Korean company agreeing to pay DuPont $275M in restitution.
- The amount is far smaller than the $920M in damages that a U.S. District Court awarded DD in 2011 before a federal appeals court overturned the ruling in 2014.
- DuPont had accused Kolon of the theft of 149 of its trade secrets relating to the Kevlar fiber used to make body armor, fiber-optic cables and tires.
- Kolon also pleaded guilty to a federal charge of conspiracy to convert trade secrets and will pay an $85M penalty.
Thu, Apr. 30, 10:59 AM
- DuPont (DD -0.4%) criticizes Glass Lewis for backing Nelson Peltz's demand for a board seat, saying the proxy advisory firm had reached the "wrong conclusion" in failing to recommend a vote for all 12 of the company's nominees.
- The proxy advisory firm late yesterday said shareholders should elect the head of Trian Fund to DuPont’s board in May, and that the activist investor had "identified legitimate concerns at DuPont, primarily related to operational execution and management accountability."
- However, it agreed with DuPont's rejection of Trian's break-up plan, and praised DuPont management for creating strong shareholder returns and for the steps it has taken to transform the business.
- Glass Lewis' statement comes after proxy firm ISS also recommended DuPont board seats for Peltz and and fellow Trian nominee John Myers.
Tue, Apr. 28, 1:58 AM
- DuPont's (NYSE:DD) "doors are not barred for something reasonable," Reuters reports, saying the chemical conglomerate's board is open to a negotiated settlement with activist Trian Fund Management.
- Yesterday, proxy advisory firm ISS recommended Trian's co-founder Nelson Peltz for a spot on DuPont's board, dealing a severe blow to the company ahead of a shareholder vote on May 13.
- Trian, DuPont's fifth-largest shareholder, has long-argued that the conglomerate should split itself up to unlock better value for shareholders.
Mon, Apr. 27, 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.
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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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