Proctor and Gamble, the maker of household products like Tide and Crest, is sliding after claiming victory in a proxy battle with activist investor Nelson Peltz.
Shares were down as much as 2.66% after the company said investors had rebuffed the activist investor.
P&G is trading at $US91.10 as of 11 a.m. in New York on Tuesday.
Nelson Peltz began waging his proxy war after announcing a $US3.5 billion stake in the company in February. He was nominated to the board in July and both Peltz and P&G have spent about $US100 million trying to win the retail investors in the company over to their sides.
The battle may not be over, Peltz immediately asked for a recount of the votes after the announcement. Appearing on CNBC moments later he said the company should still put him on the board of directors.
“We’ll wait for the actual numbers to come out. If I were them I would have said it was too close to call, but they do things their own way,” he said. “I think no matter what happens I think David should put me on the board, even if they do win.”
David is P&G CEO David Taylor.
Peltz’s fund, Trian Partners, has taken on proxy wars before, most notably losing a battle at DuPont two years ago, though the CEO left shortly after the fight and spending cuts were ushered in.
Proctor and Gamble is up 8% this year.