Procter & Gamble urges shareholders to vote against activist investor

Procter & Gamble is hitting back at activist investor Nelson Peltz, saying in a letter that he's not entitled to a board seat just because he wants it.

Peltz's hedge fund has a 1.5% stake in the consumer products company. He is using that position to push for a seat on the board to help reverse what he said was P&G's disappointing financial performance over the last decade.

In its letter, P&G urges shareholders to vote against Peltz, saying he has offered no new actionable ideas for the company.

"'Why not?' appears to be the extent of Mr. Peltz's reason for board membership," P&G wrote in a letter signed by CEO David Taylor. "This is simply not a sufficient standard. Joining P&G's board is not an entitlement."

Trian Fund Management, Peltz's hedge fund, declined to comment. Trian sent its own letter to shareholders urging them to elect Peltz to the board.

The Cincinnati-based company's annual meeting is slated for Oct. 10.

P&G, whose brands include Tide detergent and Crest toothpaste, said it was working on restructuring its business and cutting costs.