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.”