Air
conditioners and security systems-maker Ingersoll-Rand PLC (NYSE:IR) on Friday
said that its billionaire stakeholder Nelson Peltz had presented some strategic
opportunities for the company, which it was reviewing for its future growth
prospects.
Peltz
acquired a 9 percent stake in the Irish company through his investment firm
Trian Fund Management, with whose executives talks are on to understand their
proposals for the company.
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Executives
of Trian Fund Management made a presentation to Ingersoll-Rand at the company's
board meeting on Tuesday, at which it also considered some other options.
The
board is reviewing all the available opportunities and expected to complete the
review of the options by the end of the ear, the company said.
Michael
W. Lamach, Chairman and Chief Executive Officer of Ingersoll-Rand, said,
“Ingersoll Rand’s Board and senior management remain committed to acting in the
best interests of all of our shareholders. We are continuing our detailed
evaluation of the strategic opportunities to drive growth and shareholder
value, including the proposals presented by Trian as well as other alternatives
identified by the Board. This review involves significant work by the
management team and our advisors to ensure the Board has the benefit of all
relevant information and data. We look forward to sharing our conclusions with
our shareholders when we have finalized them.”
Trian,
which is now one of the biggest shareholders in the company, had asked to meet
with its board and senior management.
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The
investment firm has been prompted to make its proposals as Ingersoll-Rand's
returns and profitability are behind its industry peers. It said that
shareholder value could be boosted by improvement of certain financial and
other parameters through pursuing strategic alternatives.
Shares
of the company ended higher by 1.53% to $42.60 on Friday.
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