P&G claims narrow win in proxy challenge

NEW YORK, United States - Procter & Gamble claimed victory Tuesday in a closely-watched proxy battle over the future of the consumer products giant, but its activist-fund rival refused to concede defeat.

P&G chief executive David Taylor announced at the end of the company's annual meeting that the entire slate of candidates to the board of directors had been elected, meaning that shareholders rejected Nelson Peltz, head of Trian Fund Management.

"P&G's Board and management team thank P&G shareholders for their support, input and participation throughout the proxy contest," P&G said in statement.

"We are encouraged that shareholders recognize P&G is a profoundly different, much stronger, more profitable Company than just a few years ago."

The results "are considered preliminary until final results are tabulated and certified by the independent Inspector of Elections," P&G said.

P&G, which makes Old Spice deodorant and Pampers diapers, is the largest company by market capitalization to face a proxy battle.

But Trian, citing the closeness of the vote, did not concede defeat.

"According to our proxy solicitors, today's vote is too close to call and it will take more time to determine the outcome," Trian said. "We await the certified election results by the independent inspector of election."

During the months-long contest, Peltz had argued that P&G was too insular and needed an outside voice on its board to rouse innovation and open its eyes to opportunities in a fast-changing retail environment.

Peltz pointed to sluggish sales and the declining market share of many key products.

But P&G defended its record, pointing to some improving sales data and describing Peltz's efforts as a threat to ongoing improvements being made. The company has sold secondary brands and invested heavily in marketing around social media and other types of ascendant advertising.

Taylor and others also questioned Peltz's knowledge of P&G's product categories and his long-term commitment to the company.

Shares in P&G fell 1.4 percent to $90.86 in mid-morning trading. — Agence France-Presse