Homepage / Investment / Nestlé shares hit record after Daniel Loeb’s fund targets group
Deneme Bonusu Veren Siteler Deneme Bonusu 2024 Explore the Magic of WildCardCity Güvenilir Bahis Siteleri En İyi Kumar Siteleri Balıkesir Triatlonuna Avrupadan Ödül Tricks of the Aviator gambling establishment game by Spribe Çevrim Içi Kumar Siteleri “bonus” Yalanıyla Kandırıyor En Güvenilir Canlı On Line Casino Siteleri Xbetting-tips Com Uncovering the Abundant Tapestry of Ozwin Gambling establishment Evaluating Board Portal Providers Uncovering the Wealthy Tapestry of Ozwin On line casino Electronic Data Area Providers Evaluation Cobra Internet casino: Raising the Australian On the internet Video gaming Practical experience 4 Things to Search for in Safeguarded Cloud Safe-keeping Fastpay On line casino Australia – Simple and No-Taxation Wagering Web page officielle franзaise de Joka Gambling establishment The Software Development Universe Game Woo Internet casino – Enjoy Slot machine games around australia Ostdeutsche Biersorten What Are Virtual Data Rooms? Vitamin D Receptor Polymorphisms Revue du Casino BlackLabel Faktory, kterй ovlivnujн hodnocenн ceskэch online kasin How to Make the Most of Your Web Development Organization and Advertising Efforts L’essor des casinos en ligne en France Boost Meeting Efficiency With Boardroom Technology Developments WildJoker Casino WildCardCity On line casino – Guaranteed Australian Gambling Portal WildCardCity Casino – The Ideal On the internet Gambling establishment within australia Modern Technologies Produce Sharing Documents Online Faster and More Protect Free Virtual Info Room pertaining to Speedy Due Diligence A Review of Data Area Software For people who do buiness Five Board Bedroom Features Which will help You Acquire a More Productive Boardroom Electronic Systems To your Business Understanding Legal Terms and Laws in Today’s World The Laws and Contracts of Hollywood: A Sunset Blvd. Tale Legal Discussion Between Johnny Cash and Antonin Scalia Legal Insights: What Teens Should Know Legal Issues and Exceptions: What You Need to Know Legal Insights and Expert Analysis Celebrity Dialogue: Legal Matters in the 21st Century Famous Personalities Discuss Legal Issues The Boys in the Boat: Legal Advisors and The Quest for Legal Knowledge Understanding Legal Matters: Q&A on Criminal Law, Joint Ventures, and More Enticing Title The Departed: Understanding Basic Work Requirements and Legal Rights Youth Slang Blog Article Legal Insights: A Journey into the World of Law The Ins and Outs of Legal Matters: Everything You Need to Know Legal Insights and Trends: A Rap Guide Mysterious Legal Matters Unveiled Insights and Information: Understanding Various Laws and Regulations Famous People of the 21st Century The Circle of Legal Life The Intersection of Fashion Law, Legal Translation, and THC Oil: A Modern Legal Guide Legal Q&A: Understanding Joinder Federal Rules and More Understanding Legal Terms and Conditions: A Comprehensive Guide Understanding Legal Documentation in a Fun Way! Understanding Legal Aspects: From Islamic Law of Inheritance to Farm Law Protests Understanding Legal Rights: A Guide to Legal Regulations and Requirements Understanding Legal Guidelines and Agreements Famous 21st Century People in Conversation Mysterious Legal Matters Unveiled Legal Matters and Real Estate: A Conversation Between Cameron Boyce and Donald Trump Understanding Legal Expertise and Why It Matters Legal FAQs and Expert Services Understanding Legal Ramifications: Common Law Ontario Health Benefits and More The Ins and Outs of Legal Requirements: From FBI Academy Physical Requirements to Silver Lake Fishing Rules The Legal Underworld: Understanding the Significance of Laws and Rights Legal Conversations: A Dialogue Between Jon Jones and Chadwick Boseman Legal Beats: Bobcats, Real Estate, Babysitting, and More Legal Matters and Netflix VPN Diabolique: Legal Affairs and Deception Ben Shapiro and Eddie Van Halen Discuss Legal Matters Legal Aid and Other Legal Issues Q&A Famous 21st Century Personalities in Dialogue Youthful Blog Post Expert Legal Insights: Top 8 Law Firms in Australia, Quasi Contracts, and More! Youth Slang in Legal Matters Steps to make Your Mother board Room Even more Productive and Meaningful Choosing Data Rooms for Homework The Enigmatic World of Legal Affairs and Contracting The Mystery of Legal Matters Understanding Legal Mandates and Guidelines in the Business World Celebrity Dialogue: Legal Matters and Personal Names Legal Questions: Answered! Mysterious Legal Insights and Tips The Mysterious World of Legal Agreements Legal Lingo: Reviews, Agreements, and More Exploring Legal Education and Responsibilities: A Comprehensive Guide Unconventional Wisdom: A Dialog Between 21st Century Icons Mysterious Legal Matters Unraveled The Legal Maze: Navigating the Legal Landscape Dialogue between Jared Kushner and Vasyl Lomachenko Legal Matters: A Conversation Between Prince and Lionel Messi Get Clued In: The Legal Lowdown for Gen Z Famous People of the 21st Century Talk About Legal Matters The Enigmatic World of Legal Agreements and Terms Are You Breaking the Law? Unusual Legal Questions Answered Understanding Legal Services, Parental Responsibility Laws, and More Understanding Legal Agreements and Requirements

Investment

Nestlé shares hit record after Daniel Loeb’s fund targets group

Shares in Nestlé rose more than 4 per cent on Monday morning after the Swiss consumer group became latest target of US activist investor Daniel Loeb.

Mr Loeb’s Third Point has taken an investment position of roughly 40m shares, or 1.3 per cent, in the company, and has begun “productive conversations” with management, the US-based hedge fund said on Sunday. The stake, including options, is worth about $3.5bn, it said.

Nestlé, whose products include baby milk, pet food, Nespresso coffee and KitKat chocolate bars, is under pressure to boost profitability as the global food industry reacts to pressures unleashed by Kraft Heinz‘s failed $143bn takeover approach this year for Anglo-Dutch group Unilever.

Receive 4 weeks of unlimited digital access to the Financial Times for just $1.

A spokesman for the company said: “As always, we keep an open dialogue with all of our shareholders and we remain committed to executing our strategy and creating long-term shareholder value.” It declined to comment further.

Investors have broadly welcomed the arrival of Mark Schneider, who took over as Nestlé’s chief executive in January. But Third Point said the company is “ripe for improvement”, and is “stuck in its old ways”.

The hedge fund is proposing Nestlé set a formal profit margin target of 18-20 per cent by 2020, boost its debt to buy back shares, put non-core products in its portfolio up for sale and sell its 23 per cent stake in cosmetics maker L’Oréal. Nestle’s current operating margin is about 15 per cent.

Its shares jumped 4.2 per cent to a record high of SFr85.50 in morning trading in Zurich on Monday. The stock has risen 17 per cent so far this year.

The company announced this month that it would quit the US confectionery business and put up for possible sale brands including Butterfinger, Baby Ruth and Crunch chocolate bars which generated sales of SFr900m ($923m) last year. Analysts believe Nestlé’s revamped US frozen food business could also be put up for sale by Mr Schneider.

Nestlé has also taken a stake in Freshly, a New York-based online ready meals company, as it seeks to build expertise in distribution and shore up its position in America’s fast changing food retail market.

Those changes may not be enough for Third Point. It said Mr Schneider “will need to articulate a decisive and bold action plan that addresses the staid culture and tendency towards incrementalism that has typified the company’s prior leadership and resulted in its long-term underperformance”.

Mr Loeb, whose fund also has a large portfolio of credit investments, has returned to activism after a hiatus in 2016 when he thought there were too few opportunities. Third Point is also agitating for a change to plans at Dow Chemical and DuPont, which are preparing the restructuring that will follow their merger.

Nestlé’s businesses model has traditionally focused on leveraging its sales growth, and its size acts as a defence against possible takeover attempts. Organic growth has slowed in recent years as a result of changing consumer trends and a sluggish global economy, and Kraft Heinz’s actions have fuelled speculation that Nestlé would not be immune to upheaval in the global food industry.

Unilever, under pressure from the aborted Kraft Heinz bid in February, increased its operating profit margin target to 20 per cent by 2020, up from 16 per cent.

In one of his few public appearances since taking over, Mr Schneider has hinted he will put greater emphasis on boosting profits.

More from Financial Times:
Rio Tinto backs Chinese-led bid for Australian coal assets
Kushner meeting shines spotlight on Russian bank
Theresa May strikes ‘confidence and supply’ deal with DUP

Source: Investment Cnbc
Nestlé shares hit record after Daniel Loeb’s fund targets group

Comments are closed.