DuPont Co. (DD:US) rose the most in more than a year after the New York Times’s Andrew Ross Sorkin said activist investor Nelson Peltz amassed a “very big” stake in the largest U.S. chemicals company by market value.
Sorkin spoke today at the CNBC Institutional Investor Delivering Alpha Conference in New York. Peltz, the co-founder and chief executive officer of New York-based Trian Fund Management LP, declined to comment to Sorkin. Anne Tarbell, a spokeswoman for Trian, and Michael Hanretta, a spokesman for Wilmington, Delaware-based DuPont, declined to comment to Bloomberg News.
DuPont rose 5.3 percent to $57.25 in New York, the biggest gain since November 2011 and the highest closing price since April 2000.
Activist investors generally acquire equity stakes in companies and try to force management to make changes that boost share prices and investor returns. Trian last year successfully pushed Ingersoll-Rand Plc to sell some businesses. The Swords, Ireland-based maker of air-conditioning systems and climate-control technologies is spinning off Allegion Plc, a unit that sells residential and commercial door locks.
Peltz, 71, told the conference earlier today he wants PepsiCo Inc. (PEP:US) to buy Mondelez International Inc. (MDLZ:US) for $35 to $38 a share in an all-stock deal. Peltz disclosed stakes in Mondelez and Pepsi in April, feeding speculation that he would push to unite the food makers.
In 2006, Trian waged a six-month proxy fight with H.J. Heinz Co. to win seats on the board and persuade management to execute a turnaround plan. Warren Buffett’s Berkshire Hathaway Inc. and Jorge Paulo Lemann’s 3G Capital Inc. bought the manufacturer of ketchup and infant formula last month for about $23 billion.
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