[ad_1]
The war of words between Daniel Loeb's third point and Campbell Soup intensified after descendants of one of the founders of the food company said they would support the status quo in the fight for the future of his council of Directors.
Third Point, which has launched a proxy fight to reorganize the entire board of directors of the food company, has described the current directors' mandate as "incredible waste" in a video released on Thursday. According to the fund, a dollar invested in the company 20 years ago was worth today $ 1.19, against $ 4.06 in the S & P 500 index and $ 4.37 in the US $. S & P 500 Consumer Staples Index.
"The failed leadership of Campbell's board of directors has destroyed more than two decades of value for its shareholders as their competitors flourished," the fund said in the video. "They wasted your money on bad business that did not work."
Campbell said in a statement: "Third Point is once again trying to mislead Campbell's shareholders by choosing benchmarks for performance. Once again, Third Point did not offer any credible idea of how it proposes to create value for shareholders. A video is not a plan. "
Mr. Loeb hopes to convince enough shareholders frustrated with his performance to trump the descendants of John T. Dorrance – the inventor of Campbell's condensed soup – who together hold 41% of the shares of the society. board.
Bennett Dorrance, Mary Alice Dorrance Malone and Archbold van Beuren, all members of Campbell's Board of Directors, as well as Charlotte Weber and other family members.
Some analysts have said that Third Point – one of the largest investor activists, with $ 18 billion under management – is facing a daunting challenge. Stifel analysts said the fund should raise more than 80 percent of the votes of non-family members to win.
Third Point increased its stake in Campbell to 7% and is associated with another major shareholder, George Strawbridge, also a descendant of John T. Dorrance. Together, they hold 9.75% of the shares.
Third Point repeatedly criticized the company's performance, saying the board was responsible for "mismanagement, waste, poorly designed strategy and inefficient execution."
The fund argued that Campbell should consider selling some of his assets, including Pop Secret microwave popcorn and Pepperidge Farm frozen cakes. He also believes that the company could get bids of 52 to 58 dollars per share if it went on sale. Shares traded at $ 36.65 on Thursday.
Last week, the fund asked Campbell to wait until he chose his next chief executive until the proxy fight was decided. Denise Morrison, Campbell's former executive director, resigned in May when the company announced a strategic review.
The company has blamed its challenges on "significant industry challenges," including increased transportation costs and the supply chain, as well as a shift in consumer preference for healthier foods.
Although Mr. Campbell stated that his returns were consistent with those of his counterparts in the sector until 2016, his performance since "is unacceptable". The board hoped to improve by focusing on its core North American market, by divesting non-core businesses, including its international and new brands, by reducing debt, improving execution and achieving more. ; savings.
The issue must be voted on at the Company's annual meeting of shareholders on November 29th.
Source link
