Plus   Neg

Newell Brands Urges Shareholders Not To Take Action On Starboard's Mailing

Newell Brands Inc.'s (NWL) independent directors urged shareholders not to take any action in response to Starboard's mailing, and discard all BLUE proxy cards or voting instruction forms. Starboard, which along with other investors beneficially owns about4.5% of the company's shares, is seeking to have the entire board replaced.

In an open letter, the directors outlined their case for shareholders to stick with Newell's current management and strategy.

"The Board and management team recognize that Newell Brands' recent performance has fallen short of expectations. This team understands that the company must do more to perform and match the speed of change in the retail market," Newell said in the letter.

Newell said that it expects its divestiture plan to generate about $6 billion in net proceeds after taxes, following the successful execution in 2017 of eight divestitures at 12x EBITDA in aggregate; these proceeds will be used to deleverage the balance sheet to our targeted range while simultaneously returning value to shareholders in the form of dividends and share repurchases.

Separately, Starboard Value LP announced that certain of its director nominees, Ian G.H. Ashken, Martin Franklin and James Lillie, have committed to purchase an aggregate of $25 million worth of Newell stock with their personal capital in the open market if Starboard successfully replaces Newell's Board of Directors at the Company's 2018 Annual Meeting of Stockholders.

For comments and feedback contact: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Royal Bank of Canada (RY, RY.TO) reported that its first-quarter net income to shareholders increased to C$3.10 billion from C$2.93 billion, a year ago. Earnings per share was C$2.15 compared to C$2.01. Adjusted EPS was C$2.19 compared to C$2.05. On average, 12 analysts polled by Thomson Reuters expected... Google added bitcoin's 'B' symbol to its Keyboard on iOS devices, indicating the leading cryptocurrency's growing acceptance in the mainstream industry. The feature, however, is not added to Android keyboards. The addition of the bitcoin currency key reflects Google users' growing interest in bitcoin. According to Google Trends, 'What is Bitcoin?' was the most popular search question in 2018. Shares of Deutsche Telekom AG were losing around 2 percent in German trading after the telecom giant reported Thursday a net loss in its fourth quarter, compared to prior year's profit, despite increased revenues. Looking ahead, the company said its 2019 forecast shows undiminished growth momentum.
Follow RTT