Nelson Peltz’s Trian Fund Management, has become a top ten shareholder of General Electric Co (GE) with a beneficial ownership of 98.5 million shares currently valued at approximately $2.5 billion. GE is now Trian’s largest investment.
Trian Principals Nelson Peltz and Ed Garden have a longstanding relationship with GE’s CEO Jeff Immelt.
Since 2013, Trian has periodically engaged in informal dialoguewith GE’s management team. Over the past several months, Trian has conducted investment due diligence, including on-site visits and meetings with leaders of various GE business units.
General Electric reshaped its portfolio from a broad conglomerate, including a large regulated financial services business, to a leading industrial company focused on attractive infrastructure end markets.
Trian has not asked GE for board representation but expects management to deliver on its commitments.
Five months ago, In May, Dupont shareholders rejected Trian seats on its board. In June, Trian took a stake in the water and fluid-products systems company Pentair and pushed it to consider acquisitions.
Trian said in a statement “GE undervalued and underappreciated by the market.” The company “has significant long-term potential and that its implied target value per share, including dividends, could be $40 to $45 by the end of 2017 based on our view that GE can deliver EPS of at least $2.20 in 2018”.