DuPont has come out swinging in a proxy fight with investor Trian, taking note of the bankruptcy of one of the investments of the firm.
In a letter to shareholders CEO Ellen Kullman highlighted the performance of the company and took a few swipes at the New York investment firm that owns less than 5 percent of the company.
Trian, led by Nelson Peltz, is seeking four seats on the board of DuPont. A non-negotiable point seems to be a demand by Peltz to become a director. DuPont has indicated that one of Trian’s slate of four nominees is qualified.
Trian claims further sales of DuPont businesses are needed, pointing to the strong performance of stock of recently sold Axalta, the former DuPont automotive finishes business.
DuPont appointed two members to its board with experience in turning around troubled companies, a moved aimed at convincing shareholders of the independence of its directors.
“Trian appears intent on running a proxy fight at all costs. DuPont’s Board and management team are always open to different perspectives and good new ideas and we regularly engage with our shareholders to seek feedback,” Kullman wrote. “In an ongoing effort to work constructively with Trian, we met with them more than 20 times, including telephonic and in person meetings with our senior management and/or lead independent director. Despite our engagement, they presented an ultimatum to DuPont that they have continued to reiterate to us – break up the company, put Trian on the DuPont Board, or face a proxy fight.”
Kullman went on to write that Trian “fails to mention that in their only investment in this sector, a company called Chemtura, their board leadership and strategic plan resulted in Chemtura filing for bankruptcy.”
She went on to claim that Trian’s strategy is risky, with plans to further break up the company destroying shareholder value.
Much of the letter is devoted to a discussion of DuPont’s performance and its decision to spin off its Performance Chemical business into a separate company known as Chemours.
DuPont and Chemours will swap headquarters sites, with DuPont moving its Chestnut Run site and Chemours occupying the company’s main office in downtown Wilmington.
