Nestle activist Daniel Loeb looking to oust Chairman Paul Bulcke, could target board seat - report (translated)
09 JUL 2018
Nestle [VTX: NESN] investor Daniel Loeb (Third Point [NYSE: TPRE; LSE: TPOU]) is looking to oust Nestle Chairman Paul Bulcke, Sonntagszeitung reported. The Swiss weekly cited unnamed sources close to Loeb who said Loeb is targeting the removal of Bulcke. Loeb believes Bulcke should have stepped down at the last AGM as his move to Chairmanship after having been CEO does not help his successor Mark Schneider implement a cultural change at the company, the report stated.
The report said Loeb would consider nominating himself or a Third Point representative for election to the board at the next AGM should he be unable to place a director on the board with experience in the food & drinks industry. Loeb owns around 1.3% in Nestle having invested around USD 3bn in the group making Third Point the eighth largest shareholder, the report added. Loeb is supported by other shareholders including Schroders and Artisan Capital, the report noted.
A Nestle spokesperson declined to comment on Loeb's demands, the report stated.
The original article was published today on page 35.
Background:
On 1 July Third Point demanded Nestle split itself internally into three divisions - beverages, nutrition and grocery; spin off more businesses that do not fit its strategy such as frozen foods, ice cream, and confectionary; and appoint an outsider with expertise in the food and beverage business to the company board.