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.
Get Free Trend Analysis in IR
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.
How Should Investors Trade IR, Find Here
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.