Latest News by Industry
• Kroger is not directly involved in raising or processing any animals
• Icahn said that given Kroger’s financial position, the outcome would be same as McDonald’s
Carl Icahn on Monday decided to drop his proxy fight against Kroger Co (NYSE: KR) over the use of gestation crates and the treatment of pregnant pigs and is withdrawing his nominees from the grocer’s board.
The news comes days after the activist investor lost a similar battle at McDonald’s Corp (NYSE: MCD).
Icahn has criticized the companies for treating animals, saying that constraining pigs in crates during their pregnancy is inhumane.
He pushed McDonald’s to better source its pork - a move the burger chain said was “completely unfeasible”.
In March, the activist investor nominated two directors to the supermarket chain’s board a month after taking on McDonald’s.
“I was surprised and initially disheartened by the disappointing McDonald’s vote,” Icahn said after the burger chain’s shareholders re-elected all of its directors in May, ending Icahn’s attempt to secure two board seats.
The grocer has previously said it is not directly involved in raising or processing any animals, and Kroger’s board and committees directly oversee its animal welfare strategies.
“After much contemplation, given the company’s financial position, I believe the same outcome will result at Kroger,” the billionaire said.
Picture Credit: Bloomberg
ALSO READ: