Activist investor and CEO of Trian Partners Nelson Peltz is fighting back against a British media report that he's planning to launch a campaign against money manager Legg Mason Inc. (NYSE:LM) with the ultimate goal of breaking up the firm.
Earlier in the week, the Telegraph, citing unnamed source, reported that Peltz was secretly accruing a 20% stake in the company and planned to begin a campaign against the management of Legg Mason. On Thursday, an unnamed Peltz associate told The Wall Street Journal that Peltz's position in the Baltimore-based firm remains at 1%.
Of course we don't necessarily need to rely on a terse Journal story or even an FBR Capital Markets analyst's note that Reuters cited to surmise that the thinly sourced story is what our British friends might call hogwash. For starters, Peltz's activist campaigns usually stick with what he knows best, consumer products. For example, he recently tackled Cadbury Schweppes, H.J. Heinz Co. (NYSE:HNZ) and Wendy's Arby's Group Inc. (NYSE:WEN). A money manager would be a big divergence for him.
Even if he were to wander from his usual path, Peltz could not keep his plans secret. The minute he accrued another 4% of the company, he'd have to file with the Securities and Exchange Commission. So far, a perusal of the SEC Edgar shows no such filings exist. - Matthew Wurtzel
See story from the Telegraph
See story from The Wall Street Journal
See story from Reuters
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