DuPont has some things to clear up when it comes to the chemicals giant’s standoff with activist investor Nelson Peltz.
The company, which has been squared off in a proxy battle with Peltz’s Trian Fund Management for months, sent a letter to its shareholders Tuesday in an attempt to dispel what DuPont sees as “misleading assertions” made by the activist investment firm. “In an attempt to advance their agenda, Trian has launched a proxy fight based on misrepresentations, inaccurate data, and flawed analyses to distract from DuPont’s track record of strong performance,” DuPont CEO Ellen Kullman said in the letter.
The letter accuses Trian — which has a nearly 2.7% stake in DuPont (DD) — of using misleading statements in its attempt to secure seats on DuPont’s board of directors for Peltz and three other candidates picked by Trian. Peltz’s firm has attacked DuPont for falling short of earnings and revenue targets and has urged the chemicals company to split itself into two separate companies even after it completes a planned spin-off of its performance chemicals business.
In Tuesday’s letter, Kullman notes that DuPont’s shareholder returns have exceeded those of its rivals over the past year, as well as over the past 3-year and 5-year periods. DuPont’s stock is up more than 18% over the past year, which also outpaces the benchmark S&P 500’s 14% gain during that period.
DuPont also took aim at claims Peltz made recently in which the activist investor took credit for DuPont’s improved stock performance in recent years, attributing the increased returns. A separate document also sent to shareholders by DuPont attacks what the company calls “Trian’s Myths,” including Peltz’s recent assertions that DuPont’s improved returns are attributable to Trian’s ongoing push for changes at the company. DuPont charts the company’s stock performance going back more than seven years to show improved performance that predates Trian’s 2013 investment in the company.
DuPont has repeatedly rejected Trian’s push for four seats on the company’s board and for DuPont to separate its businesses, though the company said Tuesday it has met with Peltz “more than 20 times” in an effort to come to a resolution with Trian. Earlier this month, DuPont named two of its own candidates to its board of directors. Last week, Trian said it was “open-minded” when it comes to avoiding breaking up DuPont, adding that the ongoing proxy battle is more “a referendum on DuPont’s financial performance.”
Trian did not immediately respond to Fortune’s request for comment on the shareholder letter.
New board members will be voted on at DuPont’s annual shareholders meeting, a date for which has not yet been set.
