Dan Loeb, manager of Third Point hedge fund, along with another shareholder is pushing for the sale of Campbell Soup (CPB). Third Point holds a 5.6% stake in Campbell, which is currently undergoing a strategic review. Loeb and the other shareholder, George Strawbridge, hold a combined stake of over 8% in Campbell.
It is believed the best outcome of the strategic review would be a sale, but in order to sell the company, Third Point needs to get the support of the founding family, whose members hold a combined stake of 41%. The family is divided in its opinion on the sale of Campbell. The company plans to reveal more details at the announcement of its fourth quarter results, which is due at the end of this month.
Campbell, which held a strong position once, has lost a major chunk of its value over the years
One aspect to watch out for would be whether the family will agree to a sale but an equally interesting point is whether Campbell can get a buyer. Campbell, which held a strong position once, has been struggling for a while and has lost a major chunk of its value over the years. Kraft Heinz, which was touted as a possible suitor recently, does not appear to have plans on scooping up Campbell.
Packaged foods companies like Campbell Soup are facing tough competition from major retailers like Amazon (AMZN) and Walmart (WMT). Campbell, which reported a loss for its third quarter and saw the abrupt exit of its CEO at the time, has been struggling to keep up in the industry. The company is seeing a slowdown in its soup business while the fresh foods business is posting losses.
Campbell also appears to be facing issues with the integration of the Snyder’s-Lance business. Some analysts have suggested that a spin-off of the company’s snacks business, which is doing well, would be a good strategy. Campbell’s stock is down over 12% so far this year.
Most Popular
What to look for when CVS Health (CVS) reports Q3 earnings
Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain
eBay (EBAY): A few factors that helped drive growth in Q3 2024
Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to