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Reuters
By Svea Herbst-Bayliss and Uday Sampath Kumar
NEW YORK, Nov 26 (Reuters) – Campbell Soup and Third Point LLC settled their power of attorney Monday by adding two of the hedge fund's nominees to the board of directors of the US food company and giving the activist investor choosing the next CEO of Campbell, the company said.
Campbell Soup will expand its board with the addition of Sarah Hofstetter, President of Comscore, and Kurt Schmidt, former Managing Director of Blue Buffalo Company. From here May 2019, another director will be added and Third Point will be consulted on the choice.
In return, Third Point promised not to hold a proxy contest next year.
Campbell's shares fell 2.9% to $ 39.36 during trading on the New York Stock Exchange.
Agreement between 149-year-old food company and Loeb hedge fund, one of the most watched hedge fund activists in the world, puts an end to a fierce battle in front of a US board before the vote investors at Campbell's annual meeting on Thursday. A number of fortune heirs Campbell, including three current board members, control about 41% of the company and make it increasingly difficult for Third Point to win the vote count, have said people familiar with the case.
"We are pleased to have reached an agreement with Third Point that is in the best interest of Campbell's shareholders," said Campbell Acting CEO Keith McLoughlin.
Daniel Loeb, the billionaire investor who heads Third Point, said his company "was eager to work with Campbell to enhance value for all shareholders at this important time for the company."
Loeb first asked other investors to help him oust all board members, saying that he was largely responsible for the price of the company. 39; depressed action of the company and its frantic takeover which encumbered him with debts. He pushed for a complete sale of the company.
McLoughlin, of Campbell, said the company had lost focus, but that she now has a strategic plan and that she is running it, for example in buying his fresh produce business.
The company is still looking for a new CEO and plans to appoint one before the end of the year. Third Point, who has spoken with a potential candidate, will be allowed to participate in the decision, the company said.
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