Trian Said to Increase Stake in DuPont to 2.7%Betty Liu and Jack Kaskey
Trian Fund Management LP, the activist fund manager that’s calling for a breakup of DuPont Co., increased its stake in the chemicals company to 2.7 percent, according to a person familiar with the situation.
Trian exercised a combination of put and call options and now owns 24.3 million DuPont shares, said the person, who asked not to be identified because the details of the shareholding haven’t been published. The New York-based hedge fund founded and run by Nelson Peltz held about 6.1 million DuPont shares at the end of June, according to data compiled by Bloomberg.
The increase comes as DuPont Chairman and Chief Executive Officer Ellen Kullman defends her strategy against Trian’s proposal to split the company into one entity focused on agriculture and nutrition and another focused on cyclical markets such as performance materials and electronics.
Kullman yesterday said cutting costs and focusing on higher-margin products will lead to “superior value” for shareholders. Trian “has no basis” for its assertion that breaking up DuPont will save as much as $4 billion a year, DuPont said in a presentation to investors yesterday.
Spokesmen for Trian and DuPont declined to comment today.
DuPont fell 1.7 percent to $66.80 at the close in New York.