CINCINNATI, OH (FOX19) - Though not technically official, hedge fund billionaire Nelson Peltz could soon have seat on Procter & Gamble's board after a proxy vote recount. The company said Wednesday it has not launched a challenge.
The surprise victory for Peltz comes after October's proxy vote appeared to have kept him off the board. He claimed the vote was too close to call and refused to concede.
The vote was prompted by Peltz acquiring 1.5 percent ($3.5 billion worth) of the company's stock.
P&G says Peltz has won by a slim margin of 43,000 shares. Here's more of what the company said Wednesday:
Peltz won by a slim margin of 43,000 shares in a preliminary vote tally prepared by independent election inspector IVS Associates, according to P&G.
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.
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.
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.