Third Point, an investment fund that is based in the United States of America, has announced its plans to oust the entire board at Campbell, a food brand.
Daniel Loeb, a billionaire hedge fund boss, is pursuing a sale of the said brand. Today, he wrote to the board in order to inform them that the fund would nominate 12 people for positions. The fund owns a 5.65 percent stake in Campbell’s Soup.
According to Reuters, Loeb wrote in the letter: “This board’s persistent failure to discharge its fiduciary duties leaves us no choice but to seek to replace the entire board with our shareholder slate.”
The said nominations would include George Strawbridge, an heir of the inventor of condensed soup who previously served on the board of Campbell, Munib Islam, a partner at Third Point, and William Toler, the former chief executive of Hostess Brands.
It would also include three women namely: marketing executive Sarah Hofstetter, Bozoma Saint John, who was a chief brand officer at Uber, and lawyer Franci Blassberg.
As a commenting regarding the action, Keith McLoughlin, the interim president and chief executive of Campbell, stated: “On 30 August, Campbell announced the results of a comprehensive board-led strategy and portfolio review to stabilise the company, improve performance and drive shareholder value.”
He added: “As part of the review process, the board, together with outside advisors, considered a full slate of strategic options and determined that the best path forward to maximise shareholder value, at this time, is to optimise the company’s portfolio, divest certain businesses and pay down debt, and further reduce costs.”
He continued: “The company is currently focused on implementing that plan and setting the foundation for sustainable, profitable growth in fiscal 2020 and beyond. The board remains open and committed to evaluating all strategic options to enhance value in the future.”