Published May 01, 2013
NEW YORK – Highfields Capital Management has increased its stake in Canadian coffee and doughnut chain Tim Hortons from 1.5 percent to around 4 percent this year, a source familiar with the situation told Reuters Wednesday.
A Highfields spokeswoman declined to comment. A Tim Hortons spokesman was not immediately available for comment.
Hedge fund Highfields Capital, which has a track record of bringing about change at other firms, wants Tim Hortons to boost returns through debt-funded share buybacks and a scaling back of U.S. expansion plans, according to documents seen by Reuters and two sources familiar with the matter.
Reuters first reported the news of Highfields' behind-the-scenes agitation Tuesday night.
(Reporting by Jessica Toonkel; Editing by Lisa Von Ahn)