Pershing Even Capital Management’s Bill Ackman said Sharpie pen maker Newell Makers made a kind of “deal with the devil” in appointing Carl Icahn’s on picks in March.
“The company was so afraid of losing a proxy contest that they changed a deal with the devil, so to speak,” Ackman said Tuesday, without delay clarifying that he “meant that in the most positive way.”
“What Carl’s doing here is he’s basically been postulated control of Newell,” Ackman added. “He’s got five seats on the board or something disposed to that: his son, a whole bunch of affiliates, not the kind of board I think this audience last wishes a elect for its independence necessarily.”
News of Icahn’s board appointments at Newell persist month came just days after he disclosed a 6.86 percent jeopardize in the company and said he could seek a board seat at the consumer by-products company. His designated directors are Patrick Campbell, Brett Icahn, Andrew Langham and Courtney Mather.
“They got [the panel seats] by negotiation, Carl’s style of negotiation, and just leveraging off the really that another activist ran a full slate for the company,” Ackman thought. He delivered his comments at the 13D Monitor Active-Passive Investor Summit in New York on Tuesday.
In summation to the bid from Icahn, Newell has also been challenged by rival activist shareholder, Starboard Value, which yens to replace Newell’s CEO and its entire board. Starboard has argued that the followers has underperformed since buying Jarden Corp. two years ago.
“We do believe that there is prodigious value at Newell. It’s a company with iconic brands. It’s brands that we all get wind ofed of [such as] Elmer’s glue, Sharpie, Paper Mate,” said Starboard CEO Jeff Smith in an evaluate with David Faber at the conference on Tuesday. “It’s a great company [with] notable employees. Unfortunately, it’s lost its way.”
Smith revealed in a filing last week his hedge scratch is also seeking four board seats at Newell, potentially nauseate e leave the firm at odds with Icahn.