Tuesday, 31 May 2016
Last updated 3 days ago
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.