By Senad Karaahmetovic
McDonald’s (NYSE:MCD) is expected to triumph in its proxy fight with investor and activist Carl Icahn who accused the fast-food restaurant chain over the treatment of pigs in McDonald’s supply chain, according to Dow Jones.
Icahn, a legendary Wall Street investor who is known for leading hostile takeovers of underperforming companies, has launched a proxy fight against McDonald’s in March over its treatment of pigs and pushed for two board seats at the fast-food giant.
But early vote tallies show that McDonald’s is expected to win this battle against Icahn. Voting will continue until McDonald’s shareholder meeting takes place on Thursday, though the results so far indicate that the fast-food chain is far ahead in this fight and the end result is unlikely to change.
McDonald’s lead in the proxy fight does not come as a surprise as Icahn’s chances were slim from the start. This is because the investor’s animal welfare-focused crusade did not show clear financial upside to McDonald’s shareholders and he had to convince a high number of shareholders to support him.
On the other hand, some believe that Icahn has secured a small win in this fight as the story has helped raise the overall awareness of the issue.
Ten years ago, McDonald’s pledged to stop buying pork by 2022 from suppliers who used the gestation crates, though not many know that it was Icahn who called for the changes.
This year, the legendary investor accused McDonald’s of failing to fulfill the pledge, which resulted in the launch of a proxy fight.