Deals
Nestle Targeted by Dan Loeb in Activist’s Biggest-Ever Bet
- Loeb’s Third Point builds $3.5 billion position in food giant
- Nestle urged to sell L’Oreal stake, repurchase shares
Activist Investor Dan Loeb Targets Nestle
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Dan Loeb has amassed a $3.5 billion stake in Nestle SA, 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 Sunday after Bloomberg first reported the position. The fund encouraged Nestle to sell its stake in cosmetics maker L’Oreal SA, increase leverage for share buybacks and adopt a formal profitability target, among other suggestions. The shares rose as much as 4.8 percent in Zurich, the biggest intraday advance since January 2015.