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.


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