US firms quick at cutting deals with activists
Latest involves Sysco granting board seats to Trian Fund
New York
EARLY in August, a call came into Sysco Corp from Trian Fund Management LP, warning the food distributor that the activist hedge fund was about to disclose a large stake in the company.
Trian, run by veteran investor Nelson Peltz, unveiled its 7.1 per cent stake in Sysco on Aug 14, and asked for board representation and for the Houston-based company to improve its profitability and return money to shareholders.
Six days later, Sysco awarded two board seats to Trian.
For Sysco, it was better to reach a quick agreement than risk a drawn-out battle, a sentiment increasingly felt across Corporate America. "That's a significant amount of shares (owned by Trian), and we're at a key point in the business right now, and really, they have a histo…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
China knockoff raid jolts a global throng of fake-fashion influencers
Tesla profits tumble but shares rise on new vehicle plan
Brokers’ take: CGS International upgrades Nanofilm to ‘hold’ despite lower target price
Roche cuts pipeline after research setbacks and sales drop
Brokerage Haitong removes long-term Hong Kong unit chief Lin, appoints new head
London stocks hit new record at open