P&G: Peltz recount win not official yet

P&G: Peltz recount win not official yet
Nelson Peltz of Trian Group, Heinz's second-largest investor, addresses shareholders during the annual meeting in Pittsburgh in this Wednesday, Aug. 16, 2006 file photo. (AP Photo/Keith Srakocic, File)

CINCINNATI, OH (FOX19) - Hedge fund billionaire Nelson Peltz could have seat on Procter & Gamble's board after a surprise win in a recount Wednesday, but it's not official yet.

Peltz won by a slim margin of 43,000 shares in a preliminary vote tally prepared by independent election inspector IVS Associates after a month of recounting from a proxy contest four weeks ago, according to P&G.

"The results are still preliminary and are subject to a review and challenge period during which both parties will have the opportunity to review the results for any discrepancies," the company said in a statement.

"P&G will disclose the final results after receiving the Independent Inspector of Elections' final certified report, which we expect in the weeks ahead."

P&G shares increased more than 3 percent in after-market trading Wednesday, according to reports.

The surprise victory for Peltz comes after October's proxy vote kept him off the board.

He claimed the vote was too close to call and refused to concede.

Peltz acquired 1.5 percent ($3.5 billion worth) of the company's stock earlier this year and wants the company to streamline.

Peltz has suggested that, if elected, he would boost stock prices by scaling back some operations.

He proposed eliminating 90 percent of P&G corporate positions, most of which are located in Cincinnati.

Simply Money's Amy Wagner said that could have a ripple effect in Cincinnati.

"The statistic that we've seen is for every P&G job lost three or four other jobs could be impacted," she said.

Company officials sought to keep Peltz off its board, claiming he has no new ideas and would negatively impact P&G's long-term health.

John White, a shareholder with P&G for the past 50 years, anxiously waited for the outcome Wednesday.

White said he supports Peltz.

"He's got a lot of experience a lot of experience in consumer products and has generally had a positive impact on the board he's gone on," White said.

White wasn't concerned that Peltz might do more harm than good for P&G, saying the other board members would be able to balance Peltz's ideas.

"He'd only be one vote and it seemed a little extreme for them to go through all the trouble to keep him off the board when he probably would have positive input," White said.

Trian Fund Management, of which Peltz is CEO, released a statement Wednesday that read, in part:

"Trian greatly appreciates the support we have received, and we are gratified that the Independent Inspector's tabulation shows that shareholders have elected Nelson Peltz to the P&G Board of Directors. The Inspector's report represents an independent, careful tabulation of all proxies and ballots submitted to the Inspector by both P&G and Trian. Trian strongly urges P&G to accept the Inspector's tabulation and not waste further time and shareholder money contesting the outcome of the Annual Meeting. Shareholders have voted, and they have indicated that they want Nelson Peltz to join the Board.

RELATED: After proxy vote, P&G realizes it must deliver

Why does this matter?

  • A Cincinnati Regional Economic Development Initiative study says one P&G job brings with it three supplemental jobs. That ranges from teachers to healthcare workers and so on.
  • Also, losing thousands of jobs and taxpayers simultaneously could flood the housing market, meaning lower property values.
  • Finally, a loss in taxpayers would mean a lower demand for lifestyle and cultural activities such as the arts.

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