In what could be the beginning of a major shift in the business strategy of Campbell, which is currently run by a family that owns the majority stake, the two parties reportedly agreed to include two nominees of Third Point in the former’s board. Since the matter is yet to be confirmed, the terms are subject to change until a final settlement is reached, which is likely to coincide with Campbell’s shareholder meeting scheduled to be held Thursday.
According to media reports, the companies have moved closer to a settlement on adding the nominees of Third Point to Campbell’s board
It is learned that Kurt Schmidt, former CEO of Blue Buffalo Co., and Sarah Hofstetter, president of Comscore Inc., are the activist fund’s nominees to be added to the board. The bleak prospects of securing an appropriate buyer for Campbell could be the reason behind Third Point freezing its aggressive proposals, including the sale of the company and replacement of all of its board members.
Campbell Soup’s stock climbs after Q1 results beat estimates
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Maintaining the uptrend that followed last week’s impressive earnings report, Campbell’s shares closed the last trading session up 2.5%. A positive change in the decision-making process at the top level could bring long-term benefits to shareholders, considering the below-average return being delivered by the company currently.
Plagued by mismanagement and financial indiscipline, Campbell badly needs a comprehensive overhaul to get back on track. Ironically, the company which drew criticism for its multi-billion dollar buyout of snack maker Snyder’s-Lance earlier this year is selling its fresh food business after efforts to revive the loss-making segment failed.