The Netlè group is in the spotlight on the Zurich Stock Exchange after the activist-investor Daniel Loeb with his hedge fund Third Point reached 3,5 million dollars of shares conquering 1,3% of the food&beverage giant . The group rose by 3,65% to 85,1 Swiss francs. It is the most important bet won by Loeb in its twenty years of activity, reports the Bloomberg agency in breaking the news.
The growth in Third Point's share weight is not without consequences: the fund has already intervened with a letter to investors to recommend the food giant to sell its stake in L'oréal, to increase the leverage to finance the buyback of shares and to increase profitability targets. Shares soared 4,5% and then fell again, hitting their highest intraday since January 2015.
The move on Nestlè only confirms Third Point's growing interest in Europe: the Fund has invested in Unicredit in Italy and in the utility E.On in Germany. demonstrating a renewed confidence in the improvement of the economic outlook of the Old Continent and in the decline of political risk in the region.
Nestlè owns 23,2% of the L'Oréal capital: the shares of the cosmetic giant are up 3,9% in Paris to 195 euros.
