Trian Fund Management Seeks DuPont Breakup Into GrowthCo, CyclicalCo

(RTTNews) - Activist investor Nelson Peltz's Trian Fund Management LP whose investment funds hold nearly $1.6 billion of the outstanding shares of E. I. du Pont de Nemours and Co. (DD) proposed to divide DuPont into GrowthCo and CyclicalCo, in addition to the announced separation of Performance Chemicals. Trian added that its plan would eliminate annual costs of $2 billion to $4 billion, also enabling DuPont's separated units to increase performance.

In a letter to DuPont's board, Train said DuPont's conglomerate structure is destroying shareholder value. Along with the letter, a white paper summary was also enclosed which contained a list of initiatives that could help DuPont improve its financial performance and double the value of its common stock within three years. DuPont is already in the process of shedding a business called performance chemicals, which makes household paint and Teflon. Further, Trian said it plans to meet DuPont shareholders to present its analysis and strongly recommended that the DuPont Board meet shareholders without management present to hear their views.