In a series of self defense steps, E I DuPont De Nemours And Co (NYSE:DD) has decided to meet with the proxy firm ISS in the second half of April 2015. DuPont has taken this step in order to strengthen its side in a battle with Trian Fund Management LP over the allocation of seats in the board of directors. As per the reports, the details were made public by a person familiar with this matter.
Insights On The Matter:
Institutional Shareholder Services or ISS is a well-known advisory firm to handle such matters in an effective way. ISS won’t take much time in announcing the results. Reports claim that the complete report will be shared publically between 7-10 days after the meeting between these two companies takes place. Trian doesn’t want to step down from its call, which eliminates all the possibilities of mutual agreement between DuPont and Trian.
As per the reports, it asked for four seats in the board of E I DuPont De Nemours And Co (NYSE:DD), which included one seat for its CEO Nelson Peltz. DuPont didn’t agree with Trian’s demands and refused to allocate four seats to it though it offered one seat to one of Trian’s nominees named John Myers.
Peltz wants to make certain changes in DuPont forcefully, which is not acceptable to the management of DuPont. He wants DuPont to separate its material business from its health, nutrition, industrial biosciences divisions and agriculture divisions. The management of the company thinks that splitting up the company will result in additional cost of $4 billion. The company shared this information during one of the shareholder presentations on Monday.
The world is going through a transition period now; hence, the company is trying to make the best use of the prevailing market conditions. DuPont has announced that it would spin off its performance chemicals unit in the near future. More such announcements will be made on May 13, 2015 when DuPont will have its shareholder meeting.