Activist Investor May Urge P&G To Lose Non-Core Brands, McDonald
This article was originally published in The Rose Sheet
Changes may be ahead for Procter & Gamble following William Ackman and Pershing Square Capital Management’s investment in the Cincinnati-based consumer-goods giant. Analysts suggest the activist investor may push to replace CEO Bob McDonald and divest non-core brands.
You may also be interested in...
Coty faced off against 44 other interested parties last year to eventually win P&G's beauty business with its $12.5bn merger bid, ushering it to the top tier of the global beauty industry. An April 22 SEC filing offers inside details on Coty and P&G's businesses and how the deal came together.
Procter & Gamble turns to its former leader, who was replaced by Bob McDonald in 2009, after facing investor and analyst pressure to shake up management. Lafley’s return as CEO “provides us with new hope,” one market analyst says.
CFO Jon Moeller says product launches will make “obsolete our existing categories and transform them in ways that create competitive advantage” for the firm. Activist investor Bill Ackman, however, says P&G is “vastly under-earning relative to its intrinsic earnings power.”