Third point is that Campbell explores a split

Third Point, who said the only justifiable option in the current board is a full sale of the company, believes that a split would make the company more attractive to investors and potential future buyers, according to people familiar with the plans. Earlier this month, he mentioned the split as one of the many ideas envisioned by his team.

Declining soup sales and the sluggish expansion of snacks and fresh food weighed on Campbell's share price, down about 22% this year. In August, he announced his intention to sell his fresh and international produce units and focus on North American meals, beverages and snacks. Acting CEO Keith McLoughlin, who replaced former Executive Director Denise Morrison after his abrupt departure in May, said at the time that the company had considered various options, including a full sale or a partial split.

Third Point also wants the company to focus on reorganizing its soup business, considering selling non-core assets such as Pepperidge Farm Frozen Cakes and buying smaller, healthier snack brands, according to plans.

Third Point believes that Campbell is unaware of the stimulus potential of its soups business and believes that the soups business could benefit by adapting Conagra Brands Inc.'s frozen food game book, which included the modernization of packaging, flavors and ingredients, said the people.

People familiar with the company's projects claim that frozen foods are not the same as soups and deny that they have been diverted from their soups.

Third Point supports initiatives already undertaken by companies to cut costs and streamline its snacks distribution network, said the population, but believes that they could be better executed under new leadership.

Third Point and Campbell's heir, George Strawbridge Jr., have partnered and hold together approximately 10% of Campbell's shares. They compare themselves to other heirs of Campbell, who own about 41% of the company, three of whom are current directors, and who plan to support the board in place at a shareholder vote scheduled for the November 29th.

Campbell's president, The Vinney, criticized Third Point last week for lacking a convincing plan or new ideas. He said Third Point's only goal is to sell the company.

Campbell announced plans to revitalize the company by investing the proceeds from the planned sales of deleveraging, which has exploded after the recent acquisition of snack food maker Snyder's Lance, to reduce costs and improve operations. Campbell also announced plans to appoint a new general manager by the end of the year.

Third Point said the company should refrain from appointing a new CEO before the vote. In his presentation, he notes that one of his candidates, former President and CEO of Hostess Brands Inc., Bill Toler, is ready to replace Mr. McLoughlin as Acting Director General.

Third Point Friday sued Campbell and his board, alleging that the food manufacturer had distributed misleading and incomplete information in order to gain shareholder support in the proxy fight. A New Jersey judge is expected to make a ruling Friday on the possibility that Third Point can go ahead with the discovery.

Write to Cara Lombardo at [email protected]