Trian makes historic $3.5bn investment in P&G

By Lucy Tandon Copp 17-Feb-2017

The investment management firm takes its largest ever stake boosting investor confidence in P&G post Coty’s acquisition of its beauty business

Trian Fund Management has invested $3.5bn in P&G, the investment firm’s largest stake in any company to date.

The investment was not revealed to P&G until 14 February when a regulatory filing was released.

Trian is expected to deliver a white paper to P&G soon, putting pressure on the owner of Gillette, Old Spice and Olay to continue streamlining and reducing costs.

A further break-up of P&G’s portfolio is said to be favoured by two thirds of P&G’s institutional investors according to a January 2016 survey by Bernstein Research.

P&G told Reuters it “welcomed all investment” in the company, and benefited from a 3% spike in shares shortly after the news of Trian’s investment broke.

Trian is known to be an activist investor with a track record of targeting major consumer, industrial and financial companies, and pushing for board representation.

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It manages more than $10bn with other active investments including US chemicals conglomerate DuPont Co, as well as Lazard, Tiffany & Co and Cadbury.