(MENAFN- AFP) Tensions between DuPont and activist investor Nelson Peltz rose Thursday as the chemical giant disclosed that Peltz had rejected a compromise offer to avoid a proxy fight.
DuPont, which announced two new board members, offered this week to consider a Peltz nominee, but rebuffed a demand that Peltz himself be appointed, according to a DuPont securities filing on Thursday.
Peltz, head of Trian Fund Management, has called for a split-up of the company and proposed four board nominees. Trian, which has accused DuPont of "continuing underperformance," holds almost three percent of the company's shares.
Peltz met with DuPont chief executive Ellen Kuhlman in Chicago on Wednesday, according to the filing.
"When we arranged to meet with you, we thought we would have the opportunity to discuss a path for constructive resolution that would serve the interests of all shareholders," Kuhlman said in a letter to Peltz.
"We are disappointed that you refused to consider any path forward that did not involve putting you personally on the board."
DuPont Thursday appointed Edward Breen, the former chief of Tyco, and James Gallogly, the former head of LyondellBasell, to its board.
Kuhlman said that the DuPont board was willing to consider one of Peltz's nominees as a "potential additional board member" if Peltz withdrew his slate of nominees. However Peltz rejected the offer, she said.
DuPont plans the spinoff of its activities in titanium dioxide, fluoroproducts and chemical solutions into a new entity that will be called Chemours Co.
But the company has resisted calls from Peltz to split up into a "growth co." that would focus agriculture and industrial biosciences and a "cyclical/cash co." encompassing performance materials, electronics and communications.
In midday trade, Dow member DuPont gained 2.5 percent to $75.55.
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