Report indicates Peltz ups stake in DuPont

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Activist investor Nelson Peltz has grown his stake in DuPont  as   Securities and Exchange documents disclosed  a so-called “poison pill” takeover provision.

 Peltz purchased nearly 5.8 million shares of DuPont. Bloomberg later reported that  Peltz’s Triad Fund Management  had accumulated 21 million shares of DuPont valued at $1.2 billion. That was far higher than the figure reported earlier in regulatory filings and would give Peltz some leverage in working to force changes at DuPont.

Bloomberg also reported that DuPont officials including CEO Ellen Kullman had meet with Triad officials.

 The investments by Peltz were revealed last month in media reports that included a column in the Business Bulletin. The news also sent the price of DuPont stock sharply higher. The company’s stock price is up by nearly a third this year.

 Under the  post-takeover compensation plan executives would receive lump sum cash payment equal to two times (three times for the Company’s CEO) the sum of the participant’s base salary and target annual bonus as well as other benefits. Such plans typically go into effect when takeover threats emerge.

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Peltz is known for investing in companies and then pressing for changes. He agitated for change at ketchup-maker H.J. Heinz, which has since been sold to a company controlled by investor Warren Buffett. He has also suggested changes at companies as large as Pepsi and Trane air-conditioning and heavy equipment maker Ingersoll Rand.

Triad typically issues white papers and other documents pressing for change, according to Bloomberg and others.

 DuPont has indicated it is looking at options, including spin-offs and sales, for its slower-growing performance chemicals business which includes the Edgemoor titanium dioxide plant.

It has also targeted its capital investments into faster-growing businesses in recent years under CEO  Kullman, who generally earns high praise for her work at the company.

Some analysts believe DuPont could split up into two companies that would separate its mature businesses from fast-growing areas such as seeds and food ingredients. Others have seen limited value in such a move, believing the benefits of selling the slower growth businesses is already priced into DuPont stock.

 In addition to his work in increasing investments he makes Peltz  and Tiad also control companies such as Wendy’s and Arby’s.

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