Dan Loeb's Third Point Takes $3.5 Billion Stake in Nestlé -- Update

By Saabira Chaudhuri Features Dow Jones Newswires

Billionaire activist investor Daniel Loeb's Third Point LLC hedge fund has taken its largest-ever bet on a public company, accumulating a $3.5 billion stake in Nestlé SA and piling pressure on the world's largest packaged foods company to find ways to accelerate growth.

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"Despite having arguably the best positioned portfolio in the consumer packaged goods industry, Nestlé shares have significantly underperformed most of their U.S. and European consumer staples peers on a three year, five year, and ten year total shareholder return basis," said the fund in a statement.

Third Point is known for agitating for change at public companies. Mr. Loeb played a big role in shaking up internet technology company Yahoo Inc. as an activist shareholder and board member some years ago.

Nestlé in February said it was dropping a long-running sales-growth target after missing that goal for the fourth straight year. The company's new Chief Executive Mark Schneider, a health-care veteran, recently said Nestlé would look to sell its U.S. confectionery business.

Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com

(END) Dow Jones Newswires

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June 25, 2017 18:26 ET (22:26 GMT)