Dan Loeb's hedge fund firm Third Point has released a letter that reveals they've taken a $3.5 billion stake (including options) in Nestle in their hedge funds as well as a special purpose vehicle they raised for the opportunity.
They see four areas for improvement:
1) Improving productivity: adopt a formal margin target
2) Capital return: adopt a leverage target and buyback stock
3) Re-shape the portfolio: perhaps sell some businesses
4) Monetize their L'Oreal stake
Third Point feels that Nestle can hit earnings per share 50% higher than today.
Embedded below is Third Point's letter on Nestle:
You can download a .pdf copy here.
We've also posted other recent portfolio activity from Third Point here and you can also read Third Point's Q1 letter.
Tuesday, June 27, 2017
Third Point Takes $3.5 Billion Nestle Stake: Letter
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