Dan Loeb and Third Point Launch Proxy Fight for Campbell Soup Board
Activist investor Dan Loeb and his firm Third Point, are looking to further take control of Campbell Soup and influence a sale, this time through the board of directors.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Campbell Soup Co. (NYSE: CPB) has been at the center of attention over the summer, first as its CEO stepped down and then for pursuing a sale of the company. Now activist investor Dan Loeb and his firm Third Point are looking to further take control of Campbell and influence a sale, this time through the board of directors.
In August, Third Point and its affiliates announced that they had acquired 17 million shares for a 5.65% stake in Campbell Soup. At the time, the SEC filing had some rather unusual wording in it regarding the purpose of the transaction: disastrous fiscal 3q18 earnings report, abysmal oversight, permitted management missteps, dismal operating performance, ill-advised acquisitions, current CEO vacuum and so on.
With this increased stake, Loeb and Third Point are hoping to further sway other investors to their cause. In this case, Third Point plans to elect an entirely new board of directors that would be more open to a sale of the company.
On Friday, Campbell Soup confirmed receipt of Third Point’s nomination of a slate of 12 director candidates to stand for election at the company’s 2018 annual meeting of shareholders.
[nativounit]
Keith McLoughlin, interim president and CEO, commented:
On August 30th, Campbell announced the results of a comprehensive Board-led strategy and portfolio review to stabilize the company, improve performance and drive shareholder value. As part of the review process, the Board, together with outside advisors, considered a full slate of strategic options and determined that the best path forward to maximize shareholder value, at this time, is to optimize the company’s portfolio, divest certain businesses and pay down debt, and further reduce costs.
Shares of Campbell Soup were last seen trading at $39.89, with a consensus analyst price target of $37.07 and a 52-week range of $32.63 to $51.07.
[recirclink id=490715]
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
