Investor response to William Ackman revealing his stake in Procter & Gamble Co. was rather tepid.

This story first appeared in the July 20, 2012 issue of WWD. Subscribe Today.

Shares of P&G closed up 0.15 percent to $64.92 on Thursday, following news on Wednesday that Ackman’s Pershing Square Capital Management took a $1.8 billion stake in the consumer products giant. Pershing’s interest in P&G was revealed last week when the Federal Trade Commission gave Pershing, the $10.5 billion hedge fund, clearance to take a large stake in the company.

That prompted many Wall Street analysts to speculate that the activist investor could push to replace P&G’s chief executive officer Bob McDonald as the company continues to lose share and traction in developed markets. P&G responded to chatter about a leadership change on Wednesday by declaring in a U.S. Securities and Exchange Commission filing that it was standing by McDonald and his plan for the company. The statement also said the board was “monitoring” the plan’s effectiveness.

load comments
blog comments powered by Disqus