Nestle needs to urgently spin off units and untangle management structure, Daniel Loeb urges
The billionaire investor says Nestle must divide itself into three units — beverages, nutrition and grocery — and add an outsider to the board with such expertise
Boston — On Sunday, billionaire investor Daniel Loeb stepped up pressure on food group Nestle, in a letter that urged its board to be "sharper", "bolder" and "faster" in spinning off businesses and untangling its complex management structure. "This is a call for urgency, rather than incrementalism," Loeb said in the letter. It came with a 34-page presentation with recommendations and critiques. Third Point, the $18bn hedge fund that has invested more than $3bn in Nestle, also launched a website to push its case. Loeb’s letter demanded that Nestle spin off more businesses that did not fit its strategy — including ice cream, frozen foods and confectionary, divide itself internally into three divisions — beverages, nutrition and grocery, and add an outsider to the board with expertise in the food and beverage business. Each division should have its own CEO, regional structure and marketing heads, Loeb said. This would "simplify (Nestle’s) overly complex organisational structure", the l...
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