MOSCOW (MRC) -- DuPont, embroiled in a proxy war with activist investor Trian Fund Management LP for board seats, said it would hold its annual shareholder meeting on May 13, said Reuters.
Trian is seeking four seats on DuPont's board, including one for its Chief Executive Nelson Peltz, to help it force the company to split into two. DuPont earlier this month rejected the hedge fund's proposal to add two nominees each to its board and the board of a unit it plans to spin off.
The chemical conglomerate, in an attempt to end the proxy war, has said it is prepared to accept one of the fund's nominees, but has refused to add Peltz to its board. DuPont had said is would spin off its performance chemicals business, but Peltz wants the company to also separate its volatile but cash flow-strong materials businesses from its nutrition and health, agriculture, and industrial biosciences divisions.
DuPont has rejected the proposal, stressing that keeping its businesses together would allow the company to benefit from its science platform, global scale, market access and brand. Peltz's Trian seemingly softened its stance on the break up in February, saying the fund was "open-minded" about keeping DuPont together.
However, Peltz said in interview to CNBC earlier this month that breaking up the company would be "the most efficient way" to get rid of USD2 billion to USD4 billion in costs.
"Trian's proposal grossly underestimates the significant upfront separation costs and dis-synergies associated with a breakup, both on a one-time and an ongoing basis," DuPont Chief Executive Ellen Kullman said in a letter to shareholders on Monday. A Trian spokeswoman declined to comment.
As MRC informed earlier, DuPont Co. posted an unexpected drop in fourth-quarter sales and forecast 2015 earnings that trailed analysts’ estimates. Revenue fell to USD7.38 billion from USD7.75 billion, Wilmington, Delaware-based DuPont said in a statement Tuesday, compared with the USD7.79 billion average of 12 estimates compiled by Bloomberg. Profit excluding some items was 71 cents a share, matching the average estimate.
DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.
MRC