DuPont investors to vote on Trian demands on May 13

Trian has proposed adding its Chief Executive Nelson Peltz and another nominee to DuPont's board as well as two other nominees to the board of a unit DuPont plans to spin off.

DuPont has rejected Trian's repeated demands to add Peltz to its board, but has said it is prepared to accept one of the fund's nominees, John Myers, in an attempt to end the proxy war.

"One of the key reasons Peltz wants to get on (the board) is that he doesn't think anyone would push for a break up (of DuPont) like he would," a person familiar with the matter told Reuters on Monday.

DuPont had said is would spin off its performance chemicals business, but Peltz wants the company to separate its nutrition and health, agriculture, and industrial biosciences divisions from its volatile but cash flow-strong materials businesses.

DuPont has rejected the proposal, stressing that keeping its businesses together would allow the company to benefit from its science platform, global scale, market access and brand.

Peltz's Trian seemingly softened its stance on the break up in February, saying the fund was "open-minded" about keeping DuPont together.

However, Peltz said in interview to CNBC earlier this month that breaking up the company would be "the most efficient way" to get rid of $2 billion to $4 billion in costs.

"Trian's proposal grossly underestimates the significant upfront separation costs and dis-synergies associated with a breakup, both on a one-time and an ongoing basis," DuPont Chief Executive Ellen Kullman said in a letter to shareholders on Monday.

DuPont shares closed at $74.34 on the New York Stock Exchange on Friday. The company's shares have risen 13 percent since Trian went public with its break-up proposal in September.

(Reporting by Swetha Gopinath in Bengaluru; Editing by Kirti Pandey and Savio D'Souza)

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