Icahn backs Newell in Starboard battle

Newell Brands has entered into a high-profile agreement that could well secure its position in the power struggle with hedge fund Starboard.

In a surprise turn of events, the consumer goods group has announced the immediate appointment of four nominees to its board by activist investor Carl Icahn.

Patrick Campbell, Brett Icahn, Andrew Langham and Courtney Mather have been elected, with retired 3M CFO Campbell serving as the new Chairman.

They are set to serve alongside James Craigie, Debra Crew, Steven Stroble, Michael Todman, and current Newell CEO Michael Polk.

In addition, Judith Sprieser and another independent director to be assigned by Icahn – with the approval of the board – will be nominated to stand for election at the upcoming 2018 annual meeting, revealed Newell.

As part of the deal, Icahn has agreed to vote all of his shares in favour of Newell’s own nominees.

Billionaire Icahn – who controls around 6.9% of Newell’s shares – has been in the public eye recently for his involvement in another leadership fight with Xerox.

Icahn and fellow Xerox shareholder Darwin Deason have called for the removal of the EOS giant’s current board in favour of their own nominations, publicly slamming its plans to merge with Japanese camera maker Fujifilm.

Earlier this month, Icahn secured a leading equity position in Newell just as it was in the throes of a proxy battle with hedge fund Starboard.

Starboard has aligned with former executives of Jarden – the group Newell acquired in April 2016 – to decry the recent departure of several members of the senior management team and Newell’s plans to cut back its core consumer brands categories.

A bitter struggle for power ensued as Starboard proposed the election of a full slate of nomineesto replace the existing board. Last week, Newell reacted with a letter to shareholders that criticised the capabilities of Starboard’s candidates, including former Jarden CEO Martin Franklin.

Now with Icahn’s backing, Newell has also expanded its transformation plan. The group’s Finance Committee – which will be chaired by Mather – will oversee the divestitures proposed by Newell in pursuit of its streamlining strategy.

“We are pleased to have reached this agreement with the Newell Brands board and I am confident that the entire company will benefit from the fresh perspectives of these new directors,” said Icahn in the announcement.

He added: “This company has a great stable of brands, and I believe a streamlined consumer-facing portfolio will help the company focus on the most important businesses and reignite the performance in their core businesses.”

Polk commented: “Our agreement with Carl Icahn reflects our shared understanding of the complexity of our business and our strategy to win in the rapidly changing retail landscape.”

Starboard is yet to publish a response.

Source: https://www.opi.net/news/icahn-backs-newell-in-starboard-battle/