A background spйculatif US between the capital of Nestlй

Business 28 June, 2017

Image of illustration. (Photo: Keystone)

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A fault?

The fund spйculatif Third Point took a stake of 3.28-billion swiss francs in Nestlй. The sociйtй amйricaine requires of the multinational corporation in canton vaud, is a sйrie of measures, including the sale of its interest in The Orйal.

Share up

Third Point has annoncй the opйration Sunday in a letter а its investors. Propriйtй of Daniel Loeb, the fund is dйjа took these derniures annйes the japanese group Sony and а the amйricain Yahoo. This participation, which reprйsente more than 1% of the capital of the food group in canton vaud, is the largest ever reached by the sociйtй investment. It would be the Third Point the huitiume shareholder of the group, according to donnйes of Thomson Reuters.

Nestlй has not souhaitй comment spйcifiquement this announcement. “As always, we maintain an open dialogue with our shareholders,” indiquй a spokesman а the ats. The group intends to pursue its stratйgie which is а crйer of the value а long-term а its shareholders.

The opйration convinced marchйs. Has the swiss stock Exchange, the action Nestlй opened sharply rising, with a record а 86 francs in matinйe. The title still had a gain of 3.90% а midi, а 85,35 francs, in a SMI taking of 1.13% to be able to time. Has the Paris stock Exchange, The Orйal gained 3.72% at.

In its letter, the fund demonstrates favourable а a sale of the 23% interest dйtenue by Nestlй in the group of cosmйtiques franзais The Orйal. This participation, he considure not stratйgique, has a value of about $ 25 billion, which corresponds а about 10% of the capitalization boursiure of Nestlй currently. Nestlй has acquired 29% of The Orйal in 1974, while the sociйtй vevey collective was worth ten times more than the franзaise. It was resold in 2014 6% of the shares after the arrivйe а йchйance of the right of prйemption rйciproque.

Margins а amйliorer

Third Point also invites the gйant veveysan а amйliorer its margins and а launch a share buyback program. The fund, which possude approximately 40 million shares and options in Nestlй, said that the title has sub-performй compared а its main competitors amйricains and europйens in matiure returns to shareholders, and this on a basis of three years, five years and ten years.

He blames йgalement the lack of growth of the bйnйfice per share on the five derniures annйes. Productive discussions have dйjа taken place between the investor and the management of Nestlй, ” continues the letter.

In a note, UBS feels that the new pressure with the new director gйnйral Mark Schneider for accйlйrer measures crйation value. The йtablissement considers that the title remains nйanmoins sub-йvaluй and recommends а the purchase.

Analysts rassurйs

In line with Daniel Loeb, the analysts considurent that the rййquilibrage of the portfolio is one of the tracks to get there. They question the relevance of the activitйs confectionery in the stratйgie of Nestlй axйe on nutrition, santй and the well-being and to endorse the rйorientation annoncйe two weeks ago, the segment’s confectionery in the United States.

The rйduction of coыts and the stratйgie financiure are йgalement two other tracks crйation value а take into account. Analysts believe that the sale of the participation in The Orйal would be a possibilitй for a share buyback programme of chf 10 billion.