Pernod Ricard: activist investor Elliott takes stake
(CercleFinance.com) - In pole position in the CAC 40 today, the Pernod Ricard share is jumping 4% this morning, with the British activist investment fund Elliott Advisors having taken a stake in the capital.
According to a press release, the funds advised by Elliott hold over 2.5% of the group's capital. Elliott Advisors begins by recognising Pernod Ricard's "outstanding portfolio of leading international spirits brands and offers one of the most attractive investment opportunities in the industry". The Ricard family has made a giant out of a small local niche player, which is deemed to be "impressive".
True to his vocation, Elliott nevertheless believes that Pernod Ricard has "potential for improvement" which could result in the release of "considerable value". The activist regrets that the group has lost market share in key segments (unidentified) and that its operating margin is 5% less than that of Diageo. It believes that the group's history in terms of acquisitions is disappointing and adds that "inadequate corporate governance" has contributed to its "underperformance".
Copyright (c) 2018 CercleFinance.com. All rights reserved.
According to a press release, the funds advised by Elliott hold over 2.5% of the group's capital. Elliott Advisors begins by recognising Pernod Ricard's "outstanding portfolio of leading international spirits brands and offers one of the most attractive investment opportunities in the industry". The Ricard family has made a giant out of a small local niche player, which is deemed to be "impressive".
True to his vocation, Elliott nevertheless believes that Pernod Ricard has "potential for improvement" which could result in the release of "considerable value". The activist regrets that the group has lost market share in key segments (unidentified) and that its operating margin is 5% less than that of Diageo. It believes that the group's history in terms of acquisitions is disappointing and adds that "inadequate corporate governance" has contributed to its "underperformance".
Copyright (c) 2018 CercleFinance.com. All rights reserved.