- Freezing rain
CINCINNATI - Activist investor Bill Ackman is again making noise about Procter & Gamble Co. Speaking at the Sohn Investor Conference in New York, the hedge fund manager said P&G stock has the potential to reach $125 in the next two years if it improves profits to $6 per share, according to Barrons .
Another report said Ackman criticized P&G CEO Bob McDonald for serving on the board of 21 different organizations and that P&G's board should make a leadership change if the company's performance doesn't improve in the next two to three quarters. Ackman said P&G should be able to grow revenue at 5 percent a year, compared to its current organic growth rate of 3 percent.
P&G spokesman Paul Fox said McDonald serves on one corporate board, Xerox, and six trade organizations, not 21 boards, as Ackman stated.
Ackman is a 1 percent owner of P&G stock whose past criticism has been welcomed by some investors, panned by others.
P&G has repeatedly said that it will pursue a combination of cost-cutting and improved innovation to boost revenue and profits globally.
"We're making steady progress," Fox said. "We've met or exceeded our goals in recent quarters and we remain laser focused on continuing that momentum."
P&G shares closed up 50 cents at $78.44, but the stock was down 72 cents in after hours trading.
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