Campbell: strategy still on track after portfolio review
(CercleFinance.com) - Campbell has determined that the best path forward for the company is to continue with divestitures, using the proceeds to reduce its debt, and to further cut costs, the US soup maker said on Thursday.
Campbell today sent a letter to its shareholders, unveiling measures to "improve performance" and "maximise shareholder value."
According to the letter, its board has confirmed that the company would focus on two distinct businesses: snacks and meals/beverages on its core North American market, while pursuing the divestitures of two non-core businesses: the international division and the fresh products unit.
The group said that it intends to use the proceeds of these sales to reduce its debt and improve its balance sheet. It also plans to increase its cost savings target by 150 million dollars.
Campbell said that its board has considered several options, including splitting the company, or even selling the entire group.
In its statement, the group also warned its shareholders, before its AGM scheduled for 29 November, against the New York-based hedge fund Third Point, which wants to renew the group's entire board of directors.
Campbell shares are currently trading up 1.3%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
Campbell today sent a letter to its shareholders, unveiling measures to "improve performance" and "maximise shareholder value."
According to the letter, its board has confirmed that the company would focus on two distinct businesses: snacks and meals/beverages on its core North American market, while pursuing the divestitures of two non-core businesses: the international division and the fresh products unit.
The group said that it intends to use the proceeds of these sales to reduce its debt and improve its balance sheet. It also plans to increase its cost savings target by 150 million dollars.
Campbell said that its board has considered several options, including splitting the company, or even selling the entire group.
In its statement, the group also warned its shareholders, before its AGM scheduled for 29 November, against the New York-based hedge fund Third Point, which wants to renew the group's entire board of directors.
Campbell shares are currently trading up 1.3%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.