‘Change the board’: Hedge-fund billionaire Dan Loeb lays out his plan to turn around Campbell Soup (CPB) – Finance

  • Third Point Management, a hedge fund owned by billionaire Dan Loeb, on Thursday set out its plan to turn around Campbell Soup.
  • Soup maker has survived years of declining sales of soups.
  • The third point says that all the company's advice should be replaced.

Campbell Soup on Thursday, by almost 2%, after the Third Point, a hedge fund owned by billionaire Dan Lobou called on shareholders to replace the company's board of directors.

“One of America’s most iconic brands lags behind failed leaders who punish shareholder loyalty,” a hedge fund that owns 8% of Campbell’s shares, announced in video released on Thursday,

“One dollar, invested 20 years ago in the S & P 500, today costs $ 4.06. $ 1, invested 20 years ago in the S & P 500 consumer goods index, will cost $ 4.37 today. But $ 1, invested 20 years ago in Campbell, will cost only $ 1.19. "

Campbell’s shares had a rocky tenure under the leadership of former CEO Denise Morrison, who retired in mayOn August 1, 2011, Morrison led the giant soup, and over the next five years, stocks rose by more than 100%. But, having reached a maximum in July 2016, they lost 40% of their value before Morrison retreated in May as the company's main business, soup, struggled for years of disappointing sales.

“It was a disappointing quarter caused by ongoing problems in the US soup and Campbell Fresh,” said Morrison in the company. second quarter issue,

“The decline in sales of organic products was largely due to the performance of Americas Simple Meals and Beverages, where sales of soups in the United States decreased by 7 percent, based on a key customer problem that we discussed last quarter.”

Third Point solution: get rid of all the advice, which, he says, does not have a continuity plan at a critical moment for the company.

“Change the board,” said the hedge fund. “Not one or two. All the people who, in our opinion, are responsible for this incredible destruction and who have long been interested in corporate insiders and wealthy heirs to shareholders and employees. ”

Campbell Soup is not the only company that Loeb has been putting pressure on this year. In July, he called a group of food Arrange the division into three units., side non-core enterprises and appoint an outsider with experience in the field of food and beverages in his board. Previously, he drove Dow DuPont, Yahoo and Sotheby & # 39; s.

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