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P&G says Peltz's plan would lead to higher costs, lower profits
September 7, 2017 / 11:43 AM / 13 days ago

P&G says Peltz's plan would lead to higher costs, lower profits

Sept 7 (Reuters) - Procter & Gamble Co on Thursday said activist investor Nelson Peltz’s plan to boost shareholder value would result in higher costs, lower profits and another restructuring that could lead to a breakup of the company.

Peltz’s Trian Partners released its long-awaited proposal on Wednesday, and called for P&G to be organized into “three largely autonomous business units under a lean holding company”.

P&G said it had studied that approach and concluded it would result in higher costs, lower efficiency, reduced profits, and an added layer of management complexity. (Reporting by Sruthi Ramakrishnan in Bengaluru, editing by Bernard Orr)

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