(Reuters) – Paint and Coatings Manufacturer PPG Industries (PPG.N) said its board unanimously supported Michael McGarry as chairman and CEO, in response to Nelson Peltz-owned Trian Fund Management's call for his dismissal.
A precipitated silica plantation of PPG Industries is pictured in West Lake, Louisiana, USA on June 12, 2018. REUTERS / Jonathan Bachman
Peltz's Trian Fund, which holds a 2.9 percent stake in PPG, had reportedly requested, according to a report from Bloomberg, to replace the current CEO with its predecessor Charles Bunch in order to reduce the performance before a possible divestiture of the company quoted people who were familiar with the matter quoted.
The report added that Trian spoke with Bunch, who is ready to return to the company.
"The directors of PPG have made it clear that the Board of Directors unanimously supports Michael McGarry as Chairman and CEO," the company said in a statement Thursday and added to the board, "also believes that PPG's strategic plan to do so has stimulated growth and shareholder value. "
The company said they would be open to hearing Trian on other topics.
Trian did not immediately respond to Reuters request for comment.
The hedge fund announced that it had selected the $ 690 million stake in PPG earlier this month.
Ed Garden, Trian's Chief Investment Officer, is expected to argue Thursday for a change at an investor conference in Toronto that the company is committed to change, Bloomberg said.
Reporting by Aparajita Saxena in Bengaluru; Editing Shailesh Kuber