Blog: Krafty Peltz eyes second bite at US food giant
Chris Brook-Carter | 30 June 2011
I suspect there will be mixed feelings amongst the Kraft Foods leadership this morning to news that Nelson Peltz is once more on the share roster. The news pushed Kraft's share value north this morning by some 2%.
Peltz is no stranger to Kraft and has held shares within the food giant before. He has a reputation for ruffling feathers in the food industry, whether it be Cadbury or HJ Heinz and his presence can engender confidence in the market.
Kraft's senior management last saw Peltz in 2007 and later that year the company sold its US cereals arm and acquired Danone's biscuits business. Peltz's presence also seemed to have an effect on the composition of Kraft's board, with independent directors soon taking up most of the seats around the boardroom table.
But his presence can also be divisive, with the 2006 battle with the Heinz board an acrimonious and public affair.
Peltz's modus operandi is to buy shares in food manufacturing giants that he believes need to change strategy. It's as yet unclear where he sees this latest investment going. But what will be fascinating is that this second foray into Kraft could bring him head to head with that other investing giant Warren Buffett.
Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...
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Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
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