Trian Fund Management LP seeks at least four seats on Board of Directors of E I Du Pont De Nemours And Co (NYSE:DD). As per the reports, it thinks that the price of DuPont’s shares can easily surpass the $120 mark by the end of 2017. It is the right time for the company to make the best use of the current market condition.
Insights On The Matter:
The past few years have been good for DuPont. The intrinsic value model of StarMine that takes into consideration the estimates of five years suggests that the price of DuPont’s shares should be at $78.90, though the last closing price on Wednesday was $71.74. The data states the price on the New York Stock Exchange. The StarMine model is used to calculate the growth trajectory over a very long period.
Trian Fund Management is an active investor and always seeks to profitable investment opportunities in the market. It owns DuPont’s 24.6 million shares that are valued at as much as $1.8 billion. It requested all the shareholders of the company to vote for its Chief Executive Officer Nelson Peltz and three other nominees.
The step taken by Trian to vote for its four nominees created controversy; therefore, E I Du Pont De Nemours And Co (NYSE:DD) came out with a statement hours after Trian’s statement saying that shareholders should look to vote for all the 12 nominees. The past quarter was one of the best quarters for the company in terms of financial results. It’s the effect of company’s consistent performance that not only Trian, but many other market experts consider DuPont a good prospect for a long term investment.
DuPont has not yet spoken anything about the Trian’s statement, but there are rumors that it doesn’t look that much interested in appointing all four nominees of Trian on its Board of Directors.