(Reuters) - Billionaire investor Daniel Loeb’s hedge fund Third Point LLC disclosed on Thursday it has partnered with fellow Campbell Soup Co (CPB.N) shareholder George Strawbridge to call for a sale of the iconic U.S. food company best known for its canned soups.
The logo and ticker for Campbell Soup Co. are displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 18, 2018. REUTERS/Brendan McDermid/File Photo
The move, first reported by Reuters earlier on Thursday, represents one of Loeb’s biggest challenges as an activist shareholder. The descendants of former Campbell Soup Chairman John Dorrance collectively own about 41 percent of the company, making it difficult to put pressure on it without their support.
Third Point and Strawbridge together own a 8.42 percent stake in the 150-year-old company, with Third Point itself owning 5.65 percent, according to a regulatory filing with the U.S. Securities and Exchange Commission.
Third Point said it believed that a strategic review underway at Campbell would create “significant value” for shareholders if conducted properly. Third Point also said it may seek board seats at the firm, if it feels that Campbell’s directors have failed to do their job appropriately.
Campbell did not respond to a request for comment. Its shares rose as much as 4 percent on the Third Point news.
The 56-year-old investor came to Campbell after Campbell Chief Executive Denise Morrison unexpectedly stepped down in May. His departure followed the company’s release of a bleak forecast for the year, when it said it would embark on a review of its many brands.
Rival activist shareholder Carl Icahn also considered an investment in Campbell, but decided against it because the family dynamics would make it tough to press
