Nelson Peltz Loses Prelim Procter & Gamble Board Vote

Shares of Procter & Gamble Co PG moved lower by more than 1 percent on heavy volume late Tuesday morning after preliminary results from a board election were released.

Investors decided Tuesday not to appoint activist investor Nelson Peltz, whose fund owns a $3.5 billion stake to the consumer product company's board. All 11 of the company's existing directors were re-appointed to serve on the board.

However, official results have yet to be released and the vote remains "too close to call," Peltz's Trian Fund Management said in a press release following the preliminary results. Nevertheless, the firm is "pleased with the support" it has received from investors and his activist campaign may have played a role in making the board more accountable and less tolerant of poor performance going forward.

"Trian believes in P&G's potential and wants to see the Company grow market share again and deliver long-term sustainable value for the benefit of all stakeholders," the press release added. "We feel strongly that a shareholder voice is needed in the boardroom and that Trian's approach will help revitalize P&G."

In fact, Peltz's intends to challenge the vote results, he told CNBC. His numbers "don't say" the same thing and showed his campaign was in the lead in the morning.

"I sat in that meeting — and I think you heard it," he also said. "The dissatisfaction on behalf of the retirees and the old-time shareholders was amazing. We sit here and you hear all the rhetoric of how well things are going and then you look at their 10-K and all five business segments have lost market share this year and last year. So, people are not fooled."

Meanwhile, shares of other related consumer packaged goods initially moved lower in sympathy. Shares of Colgate-Palmolive Company CL hit a high of $73.32 and moved below the $73 level on heavy volume. Similarly, Clorox Co CLX traded as high as $129.99 only to trade near the $128 per share level after the preliminary votes were released.

Related Links:

Peltz's Activist Campaign Nears A Vote And Looking Favorable

Procter & Gamble CEO: Nelson Peltz's Activist Campaign Is 'Very Dangerous'