Activist investor Mantle Ridge has garnered enough backing from shareholders of Air Products and Chemicals to secure multiple seats on the industrial gases giant’s board of directors, according to sources familiar with the situation. While final vote tallies are still being counted ahead of Air Products’ annual meeting on Thursday, it is expected that Mantle Ridge will win three seats.
Representatives for both Mantle Ridge and Air Products were unavailable for immediate comment.
This marks the latest chapter in a bitter and highly publicized boardroom battle, pitting an octogenarian CEO, Seifi Ghasemi, against hedge fund manager Paul Hilal, who had helped Ghasemi join the board a decade ago. The fight has become one of the most fiercely contested in recent corporate history.
Mantle Ridge, led by Hilal, has argued that Air Products must develop a clear succession plan for CEO Ghasemi, rethink its capital allocation strategies, and reduce its involvement in high-risk projects. The investment firm has pushed for the election of its four nominees to the nine-member board.
Air Products has countered by stating that it is already working on a succession plan for Ghasemi. The company also warned that electing any of Mantle Ridge’s candidates could lead to confusion and destabilize the company’s leadership and direction.
Three prominent proxy advisory firms, whose recommendations are highly influential among investors, have sided with Mantle Ridge. They argue that Air Products needs change and that at least three of Mantle Ridge’s nominees should be elected to help guide the company forward.
Large investors, including Norway’s sovereign wealth fund, Norges Bank Investment Management, have also voiced support for Mantle Ridge’s nominees, committing to vote for all four of the firm’s proposed candidates.
This marks Hilal’s second major campaign at Air Products. Over a decade ago, he was instrumental in helping to install new directors, including Ghasemi, during a proxy fight led by hedge fund Pershing Square Capital Management. Hilal founded Mantle Ridge in 2016 and has since led similar campaigns at several other companies, including CSX, Aramark, and Dollar Tree, where he was quick to install new CEOs.
For this latest battle at Air Products, Hilal has nominated Eduardo Menezes, a former executive at Linde and Praxair, bringing significant expertise in the industrial gases sector.
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