Campbell Ends Proxy Struggle With Third Point, Add Directors

NEW YORK (Reuters) – Campbell Soup and Third Point LLC settled Monday their proxy contest by adding two of the hedge fund's nominees to the board of directors of the US food company and giving the investor activist the opportunity to choose the next CEO of Campbell, announced the company.

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.

The hedge fund, which owns 7% of the company, will also be able to give its views at two board meetings and two meetings with the president and chief executive officer over the next 12 months.

In return, Third Point promised not to hold a proxy contest next year.

Campbell's stock 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 world's most watched hedge funds, ends fierce battle with US board before investors vote at the annual Campbell 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 Keith McLoughlin, Interim CEO of Campbell, in a statement.

Daniel Loeb, the billionaire investor who heads Third Point, said his company "was looking forward to working with Campbell to enhance value for all shareholders at this important time for the company."

In the beginning, Loeb had asked other investors to help him oust the entire board, explaining that he was largely responsible for the company's lagging stock price and for a wave of quick takeover that put a lot of pressure on him. He pushed for a complete sale of the company.

Campbell's McLoughlin said the company had lost focus but now has a strategic plan and is running it, for example by buying its 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.