© Eduardo Munoz/Reuters
Activist investor William Ackman’s New York-based hedge fund has amassed a $5.5bn investment in Mondelēz International.
The move indicates that the Cadbury, Oreo and Ritz owner could soon be a target for acquisition. Some analysts have mentioned the newly formed Kraft Heinz Co or PepsiCo Inc as potential buyers.
In a statement, Ackman’s Pershing Square Capital Management hedge fund said that it plans to notify the Securities and Exchange Commission that it has taken a 7.5% stake in Mondelēz, including forward purchase contracts and call options, amounting to more than 120 million shares.
“We welcome Pershing Square as investors in our company,” said Mondelēz spokeswoman Valérie Moens. “We’ll continue to focus on executing our strategy and on delivering value for all our shareholders.”
According to reports in the US media, Pershing Square wants Mondelēz CEO Irene Rosenfeld to dramatically improve margins, which were last year reported at roughly 12%. Following pressure from fellow hedge fund investor, Nelson Peltz – who became a Mondelēz director in January 2014 – Rosenfeld vowed to target operational income margins of 15% to 16% by 2016. But Ackman’s Pershing Square apparently thinks margins at Mondelēz could go even higher.
At its current share price, Mondelēz is valued at about $80bn.
Source: New York Times/Bloomberg/USA Today
© FoodBev Media Ltd 2024