Nestle seen attracting interest from activists

London

NESTLE SA could be the next food company to draw interest from an activist investor after Bill Ackman targeted Mondelez International Inc.

Food and beverage companies have been popular targets for activist shareholders because of their bloated expenses and lacklustre growth. Just last week, Mr Ackman disclosed a stake in Mondelez, spurring speculation that he would seek cost cuts and potentially a sale. ConAgra Foods Inc and Boulder Brands Inc have also recently faced calls for shakeups.

So far, activist investors have mainly targeted US food companies, but Nestle's underperformance could draw them to Europe. The US$240 billion Swiss maker of Lean Cuisine frozen meals and KitKat bars wil…