Loeb's Third Point Takes New Approach In Battle With Nestlé
For a year, billionaire hedge fund manager Daniel Loeb has watched quietly from afar as Nestlé SA tries to energise its business. But his patience has worn thin and he has been telling associates and his own investors that time is now up for the world's No. 1 food company.
On Sunday, Loeb fired off a letter and 34-page presentation to Nestlé's chief executive officer and board chairman urging them to sell more of the businesses that do not fit and untangle its corporate structure.
Loeb criticized the company's "muddled strategic approach" and called for the company to split internally into three units: beverages, nutrition and grocery. Loeb wants the company to focus on "nutrition, health and wellness" and sell pieces that do not fit, including its stake in French personal care company L'Oreal SA.
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