Activist Investor Buys $1.3 Billion Stake in DuPont

Activist Investor Buys $1.3 Billion Stake in DuPont

Nelson Peltz’s Trian Fund Management LP has taken a $1.3 billion stake in DuPont Co. and is said to now own more than 21 million shares in the business, or 2.2%.  Last month DuPont announced it is considering selling a chemical business that makes refrigerants and pigments in a move to continue the company’s transformation to a business focused on agriculture and food additives – two sectors that have generated strong growth for the company.  In 2012 DuPont’s agricultural products generated $10.4 billion in sales.  Prices for its agricultural products rose 6% in the second quarter of 2013 and its agricultural chemical business accounted for more than half its net earnings for the first half of 2013.  New York-based Trian managed approximately $5 billion at the end of 2012 and its flagship hedge fund has gained nearly 27% through August 2nd.

 

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