Original Story: usatoday.com
DuPont, which has been in an on-going battle with activist Nelson Peltz to boost the company's stock price, announced Monday that CEO Ellen Kullman will retire.
DuPont said CEO Kullman will retire on October 16th after 27 years with the company. Edward Breen, a member of the board of directors, will take over as interim chair and CEO while the board searches for a full-time replacement. A New York securities lawyer provides professional legal counsel and extensive experience in many aspects of securities law.
DuPont also lowered its expectations for operating earnings for the year to $2.75 a share compared to prior guidance of $3.10. The company said the revised outlook reflects continued "strengthening of the U.S. dollar versus currencies in emerging markets."
Still, shares of the chemical giant shot up 4% to close at $51.27 a share on the news.
In May, Kullman defeated efforts by Peltz, the billionaire chairman of restaurant chain Wendy's, to win board seats. Peltz wanted seats on the board to better position himself to push for changes that he said would boost company's stock price, such as splitting the company into several pieces.
Despite losing his bid, Peltz has continued to make noise at DuPont, where he has held a 2.7% stake. In July, Peltz said aid he's not giving up on DuPont despite losing his board battle. He also complained about DuPont's stock price and warned that he could wage another proxy contest next year if the stock declines continued. A Houston securities lawyer is experienced in the effective resolution of securities lawsuits as related to stocks, bond, and debentures.
Shares of DuPoint are down 25% over the last six months. A spokeswoman with Trian declined to comment on Kullman's retirement, or what it might mean for the stock.
Separately, Peltz's hedge fund, Trian Fund Management, disclosed a $2.5 billion stake in General Electric Monday.
The investment is expected to add pressure to CEO Jeff Immelt to improve GE's performance — a process that has included the piecemeal sale of the company's various financial and banking businesses.
GE is now Trian’s largest investment, the hedge fund said. A New York investment lawyer is following this story closely.
"We invested in GE because it is undervalued and underappreciated by the market despite what we believe is a transformation that will allow its world-class industrial businesses to drive attractive shareowner returns," Peltz said in a statement. "Our recent discussions with Jeff and his team have solidified our belief that they are highly motivated to fully deliver on GE’s transformation and share much common ground with Trian on ways to improve long-term shareowner value.”
Peltz and his partner Ed Garden "have a longstanding relationship" with Immelt, they said. And they have "periodically engaged in informal dialogue with GE’s management team" since 2013, they said.
Shares of GE jumped 5.3% Monday to $26.83.