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Nelson Peltz sells $120 million in Procter & Gamble stock

Activist still holds 36.7 million P&G shares
Posted at 9:01 AM, Feb 18, 2019
and last updated 2019-02-18 11:53:11-05

CINCINNATI -- Two years after rocking Procter & Gamble’s world by disclosing a $3.5 billion stake in the company, activist investor Nelson Peltz has sold about 3 percent of his investment in the Cincinnati-based consumer products giant.

Pelt'z New York hedge fund, Trian Partners, said the shares were sold for "portfolio management purposes," but declined further comment. P&G declined to comment on the sale.

Peltz sold 1.2 million shares over three days last week, generating about $120 million from the sale and locking in a roughly $18 million profit as P&G shares trade near its all-time high.

Peltz gained a seat on P&G’s board by staging a proxy fight against the company, pushing for changes that some feared would lead to a P&G break up. Although P&G did not take Peltz’s advice to restructure the company into three autonomous operating units, it did announce plans to reorganize itself into six business units.

It also became a more nimble competitor by introducing natural ingredients for several brands, introducing lower-priced razors sold directly to consumers and acquiring fast-growing health brands.

The activist director still holds 36.7 million shares in P&G, which are worth about $550 million more than he paid for the stock more than two years ago. He’s also earned more than $200 million in dividends from P&G since 2017.