Procter & Gamble Co. plans to challenge a vote count that would give activist investor Nelson Peltz a seat on the company's board of directors, CNBC reported Nov. 22.
Citing unnamed sources, CNBC reported that the Cincinnati-based company has told the auditor responsible for counting shareholder ballots that it will challenge a count released Nov. 15 that gives Peltz a 43,000-vote lead over a board candidate that had P&G's endorsement.
P&G said in a statement that it has not filed a challenge with the auditor, adding that the preliminary tally is "going through a customary review to ensure a final and accurate count." A spokesman told S&P Global Market Intelligence that it could be "several weeks" before certified results are available.
Trian Fund Management LP, the hedge fund that Peltz leads as CEO and a founding partner, called P&G's decision to challenge the vote "a continued distraction," according to a statement. The Fund added that P&G should seat Peltz on its board and avoid spending more money on the proxy fight.
Instead, "[P&G's] board should be focused on improving business results and regaining lost market share," Trian wrote, referencing one of the main criticisms Peltz made of the company during his campaign for a board seat earlier this year.
If P&G challenges the vote, it will be the latest blow in a monthslong saga between P&G and Peltz.
Initial results released by P&G after its Oct. 10 annual meeting showed Peltz behind the company-endorsed candidate by about 6.2 million votes out of billions cast. But a new tally released by P&G on Nov. 15 gives Peltz a narrow edge in the contest for a board seat.
Since then, Trian has urged P&G to concede and give Peltz a place on its board.
