Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, July 13, 2018

Article Excerpt

NESTLE S.A., $79.70, symbol NSRGY on the U.S. over-the-counter market, is a Swiss food company with brands that include Berber baby food, Nescafe coffee, Kit Kat chocolate bars, Purina cat and dog food, and many other consumer brands. The company’s main listing is on the SIX Swiss Exchange. Activist investor Daniel Loeb, who runs Third Point Capital, a New York-based hedge fund, owns 1.3% of Nestle. Loeb sent a letter to the company’s board of directors on July 2, 2018, repeating recommendations he made a year ago aimed at delivering better returns for shareholders. While there have been some changes at the company, Loeb is stepping up his campaign for reform. He’s gone so far as to set up a website—www.NestleNow.com—to put pressure on CEO Mark Schneider and the board to initiate more changes at the company. Loeb would like to see Nestle broken up into three separate business units, each with its own CEO and marketing department. He believes that this will improve…