Hedge Fund Scout Raises Pressure On Tim Hortons

Jun 27 2013 | 1:03pm ET

Tim Hortons is a Canadian institution, but two U.S. hedge funds aren't impressed.

Scout Capital has joined Highfields Capital Management in pushing for change at the coffee-and-donut chain. New York-based Scout this week asked the company to take on more debt to fund a share buyback.

Scout said that the move could double Tim Hortons' share price over the next few years. The hedge fund wants the company to buy back some 23% of outstanding shares.

Highfields, which launched its campaign earlier this year, wants Tim Hortons to be even more aggressive, calling for it to buy back 37% of its shares.

Scout holds a 5.5% stake in Tim Hortons; Highfields 4%.

Scout also echoed Highfields in calling on Tim Hortons to cease its expansion into the U.S.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR