Investment fund Third Point plans to oust Campbell board
US investment fund Third Point has revealed plans to oust the entire board at food brand Campbell.
Billionaire hedge fund boss Daniel Loeb, who is pursuing a sale of the brand, wrote to the board today to inform them that the fund, which owns a 5.65 per cent stake in Campbell's Soup, would nominate 12 people for positions.
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“This board’s persistent failure to discharge its fiduciary duties leaves us no choice but to seek to replace the entire board with our shareholder slate,” Loeb wrote in the letter, according to Reuters.
The nominations include William Toler, former chief executive of Hostess Brands, George Strawbridge, an heir of the inventor of condensed soup who previously sat on the Campbell’s board, and Munib Islam, a partner at Third Point.
It also included three women: lawyer Franci Blassberg, marketing executive Sarah Hofstetter and Bozoma Saint John, who was chief brand officer at Uber.
Commenting on the action, Campbell's interim president and chief executive, Keith McLoughlin, said: “On 30 August, Campbell announced the results of a comprehensive board-led strategy and portfolio review to stabilise 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 maximise shareholder value, at this time, is to optimise the company’s portfolio, divest certain businesses and pay down debt, and further reduce costs.
“The company is currently focused on implementing that plan and setting the foundation for sustainable, profitable growth in fiscal 2020 and beyond. The board remains open and committed to evaluating all strategic options to enhance value in the future.”
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