(Update to add Fortune Brands' comment in eight paragraph)
Fortune Brands Innovations (FBIN) is facing pressure from investor Ed Garden, who has built a sizable stake in the company and is pushing for leadership changes, The Wall Street Journal reported Sunday, citing people familiar with the matter.
The report said that Garden Investments is now one of Fortune Brands' top shareholders and plans to increase its stake over time to become the largest shareholder.
The size of its holding was not disclosed.
A representative from Garden confirmed to The Wall Street Journal that the firm has privately nominated director candidates ahead of Fortune Brands' next annual meeting.
Earlier this month, Fortune Brands CEO Nicholas Fink stepped down to pursue another leadership opportunity. Fortune Brands named board member Amit Banati, who most recently served as chief financial officer of Kenvue, as his replacement.
According to The Wall Street Journal, Garden believes the company acted too quickly in appointing Banati and wants to run a fresh CEO succession process.
Garden sees an opportunity to build Fortune Brands over the next decade both organically and through mergers and acquisitions once better corporate governance is in place, the people told The Wall Street Journal.
Fortune Brands Innovations confirmed to MT Newswires that it has received the nominations and is engaging constructively with Garden after learning of his investment last Friday.
Garden Investments did not immediately respond to MT Newswires' request for comment
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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