P&G holds off board pursuer
Initial voting results show Procter & Gamble successfully fending off an attempt by activist investor Nelson Peltz to capture a seat on its board, although he did not immediately concede, saying it was too close.
Shares in the consumer products giant were down following the vote at Procter & Gamble’s headquarters in Cincinnati on Tuesday.
“We are encouraged that shareholders recognize P&G is a profoundly different, much stronger, more profitable company than just a few years ago,” the company said.
Peltz’s Trian Fund Management, which owns about $3.5 billion in P&G shares, said moments after the vote that it would await certified results, which appeared to have been decided by a razor-thin margin.
“This was a big fight,” Peltz told CNBC outside of P&G headquarters.
Almost 40 percent of P&G shareholders are small investors, and the final result appeared to pit them against institutional investors that backed Peltz.
Trian says that P&G has underperformed its peers for a decade.
Big-league game of chicken
Burger King is adding spicy nuggets to its menu and firing up a rivalry with burger chain Wendy’s, which pulled the peppery snack from most of its restaurants earlier this year.
Burger King said Tuesday that its version of spicy nuggets will roll out nationwide this week. Some locations in Miami, New York and Los Angeles will give a free 10-piece to anyone who can prove their name is Wendy on Oct. 13.
In March, Wendy’s Co. wrote to fans in an open letter that its spicy nuggets weren’t that popular, and it would only sell them at restaurants in seven cities.
Wendy’s, based in Columbus, Ohio, did not immediately respond to a request for comment Tuesday morning. Burger King, owned by Restaurant Brands International Inc., said it saw on social media that there was still demand for spicy nuggets and started developing them about four months ago.
“It’s all over Twitter and Facebook,” said Burger King President Alex Macedo. “People miss spicy nuggets.”
Ikea to start third-party sales
Ikea will start selling furniture through third-party websites next year as it tries to find new ways to reach customers in the digital age.
Kaisa Lyckdal, spokeswoman for the Swedish home furnishing giant, says the aim is to start a trial in 2018 but that “no decisions are made regarding what platforms/markets will be in the pilot.”
Lyckdal said Tuesday that Ikea would further develop its online sales strategy “over the coming years.”
Ikea’s main focus “remains of course with our existing sales channels,” including its own websites and stores.
The group says 2.3 billion people globally visited Ikea sites in 2017. Founded in Sweden and headquartered fiscally in Leiden, the Netherlands, Ikea has more than 400 stores in 49 countries.
Pfizer may spin off division
Pfizer may be done selling ChapStick, Advil, Robitussin and other brands that people can buy without a prescription.
The pharmaceutical giant is weighing options for its consumer health care business. It may spin off or sell the unit, which also produces Advil, Preparation H and the Centrum brand of vitamins. Pfizer may also leave the business as is, with no sale.
The New York drugmaker expects any decisions on the business to be made next year.
Chairman and CEO Ian Read said Tuesday that consumer health products are distinct enough from the company’s main biopharmaceutical business that its value might be “more fully realized” outside the company.
The consumer health care unit had revenue of about $3.4 billion last year, while the company as a whole recorded $52.8 billion. Centerview Partners, Guggenheim Securities and Morgan Stanly are working as financial advisers for the review.
Compiled from staff and wire reports.
Business news briefs, Oct. 11: Investor loses bid for Proctor & Gamble board