Peltz Wins Allies In Battle Against Cadbury

Dec 24 2007 | 11:26am ET

Activist investor Nelson Peltz has received the backing over several other large shareholders in his battle with candy giant Cadbury-Schweppes.

The Trian Fund Management chief this week demanded an improvement in the company’s performance—or else—and other top stakeholders are indicating their agreement, the Financial Times reports. Peltz, whose fund owns about 4.5% of the company, said he would consider “alternatives”—likely a proxy or takeover bid—if he doesn’t see a better bottom line.

Worse for Cadbury, at least two other shareholders echoed his Peltz’s sentiment. David Herro of Harris Associates, which owns 2% of the company, said Peltz “hit the nail on the head,” adding that “Cadbury’s management has a lot to show in terms of execution.”

Meanwhile, mutual fund giant Franklin Mutual Advisers, which owns 4% of the Cadbury, said, “the company isn’t realizing its full potential.”


In Depth

Q&A: MackeyRMS's Chris Mackey On A High Tech Fix To Broker Votes

Jun 23 2017 | 8:17pm ET

The looming implementation of the EU’s MiFID II rules regarding research has put...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of