Investor Nelson Peltz concerned many at Procter & Gamble (NASDAQ:$PG) when he announced his strategic plan to boost shareholder value. Specifically, his plan could lead to higher costs, lower profits, and the potential breakup of the company.

Peltz’s Trian Partners released its long-awaited proposal on Wednesday, calling for P&G to be restructured into “three largely autonomous business units under a lean holding company”. Trian is P&G’s fifth-largest shareholder, who has been locked in a prolonged battle with the consumer products conglomerate.

P&G’s immediate response: “Mr. Peltz’s suggestions would be value destructive, and we believe it represents another example of his misguided view of P&G’s business.”

In fact, the company had already studied several organizational structures, including the one proposed by Peltz, and concluded generally negative results.

It comes as no surprise that Peltz has been seeking a board seat at P&G for some time now. However, he has been turned down due to irreconcilable differences with the company’s management.

P&G states: “The board evaluated Mr. Peltz against its previously identified list of desired skills and experiences and concluded that he did not fill a current need.” Additionally, the company refused to give positive recommendations about Peltz.

On Oct. 10th, the shareholders will vote on whether or not Peltz will be added to the board.

Interestingly, P&G’s shares have risen 5.5% since Peltz announced his stake.

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