Activist investor Dan Loeb takes a chance on Nestlé
The investment in Nestlé ratchets up pressure on the European consumer-goods industry after Unilever rebuffed a takeover approach from Kraft Heinz
New York — Dan Loeb has amassed a $3.5bn stake in Nestlé, targeting Europe’s largest company in the biggest bet of his two-decade career as an activist investor. Third Point, Loeb’s hedge fund, owns about 40-million shares in the Vevey, Switzerland-based company, according to an investor letter released on Sunday after Bloomberg first reported the position. The fund encouraged Nestlé to sell its stake in cosmetics maker L’Oreal, increase leverage for share buybacks and adopt a formal profitability target, among other suggestions. The shares rose as much as 4.7% in early Zurich trading. "It is rare to find a business of Nestlé’s quality with so many avenues for improvement," wrote Third Point, which holds a 1.3% stake. The Nestlé position adds to a recent push into Europe for Loeb, who is better known for his campaigns in the US and Japan. Third Point, citing an improved economic outlook and declining political risks in the region, has invested in UniCredit, the second-largest listed...
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