P&G Could Lean Toward OTC Brand Sales With Activist Investor Influence
Analysts consider the potential for P&G splitting up or selling OTC or beauty care assets following CEO David Taylor's recent comments on possible moves with activist investor Trian. Analysts weigh in on the potential for sale or swap of brands and whether the moves would help.
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Nelson Peltz's Trian Fund Management, with a stake of around 1.5%, isn't satisfied with P&G progress from multiple initiatives across more than five years toward gaining market share for its health, personal and household care products and increasing margins.
Firm's sales were down in all segments but health care in the third quarter, reflecting challenges it sees worldwide across consumer industries. In this environment, and facing the threat of commoditization in the categories where it competes, P&G is focused on delivering "irresistible superiority," a strategy that drew questions from analysts as to how exactly it will translate to wins in practice.
P&G completes the bulk of the portfolio rationalization it launched in 2014, shedding or restructuring more than half of its brands globally to focus on 10 core categories, says CFO Jon Moeller.