Pentair Plc, a provider of water and filtration systems, gained the most in more than two years after Nelson Peltz’s Trian Fund Management said it bought a stake in the company and is urging it to buy competitors.
Pentair rose 6.7 percent to $68.75 at the close in New York, the most since November 2012.
Trian, which manages more than $10 billion, said in a filing Tuesday the company “can create significant value for its shareholders by facilitating prudent industry consolidation through accretive mergers and acquisitions.” The activist investor has acquired a 7.24 percent stake in Pentair, making it the company’s third-largest shareholder, according to data compiled by Bloomberg.
Trian’s involvement may spur a more aggressive acquisition strategy from Manchester, U.K.-based Pentair, which already said it was considering additional deals, said Kevin Bennett, an analyst with Sterne Agee & Leach Inc. “I’ve never seen an activist come in and tell the company to do what it’s already doing -- Pentair’s strategy is to do M&A.”
Pentair said it was “committed to maintaining an active, engaged dialog with all of our shareholders, including Trian, and we welcome its constructive input.” The company has announced three acquisitions in the past seven months.
The Wall Street Journal reported Trian’s holding earlier today.