NEW YORK (TheStreet) -- Shares of E I Du Pont De Nemours (DD) are up 3.31% to $68.01 in pre-market trade as activist investor Trian Fund Management LP launched a campaign to force the company to break itself up after the chemical firm rebuffed its repeated private calls for change, the Wall Street Journal reports.
Trian plans to seek support from other investors for its push to dismantle the company, according to a letter it sent DuPont's board Tuesday that was reviewed by the Journal. Trian said it plans to release the letter widely after more than a year of unsuccessful private efforts to persuade.
Trian has a $1.6 billion DuPont stake, according to the letter, which would make it a top-10 holder in the Delaware company with nearly 3% of the stock, according to recent disclosures. Trian first invested more than $1 billion in DuPont in early 2013, and it added to its position recently when the stock fell after the company cut its earnings guidance.
TheStreet Ratings team rates DU PONT (E I) DE NEMOURS as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DU PONT (E I) DE NEMOURS (DD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."