PPG Industries rallied more than 5 percent in after hours trading Tuesday after word that Trian Partners has built a stake in the company.
Trian, managed by activist fund manager Nelson Peltz, has reportedly accumulated a $690 million, 2.9 percent stake in the 135-year-old manufacturer, according to a report by Dow Jones.
In a securities filing on Tuesday, amending its holdings, Trian said it had 2.6 million shares valued at $269 million as of the end of June.
PPG is one of the world’s largest manufacturers and distributors of coatings and specialty materials, with a market capitalization of about $26 billion. Due to PPG’s size and the breadth of other sectors it supports, the company is seen as a corporate barometer for the health and direction of the global economy.
Before the report about Trian on Tuesday, PPG shares plummeted more than 10 percent for their biggest drop in nine years.
Trian Partners did not immediately respond to CNBC’s request for comment.
PPG offered the following statement to CNBC:
PPG does not comment on the investments of specific shareholders. As we continually work to deliver increased shareholder value, we have always welcomed the productive input of our shareholders. PPG is looking forward to maintaining a constructive dialogue with Trian.
— CNBC’s Michael Sheetz contributed reporting.
