Nestlé, Under Pressure, Plans Buyback and Perhaps Acquisitions<br />Nestlé said that the plans it announced on Tuesday had arisen from a regular review of the company’s capital positions — its top managers began the review in January — and<br />that the announcement was not a response to Mr. Loeb’s activist campaign.<br />Yet Nestlé’s new strategic course came out only two days after Mr. Loeb’s hedge fund, Third Point, emerged as one of the company’s biggest shareholders<br />and presented suggestions aimed at shaking up what Third Point described as a significant underperformer.<br />By MICHAEL J. de la MERCEDJUNE 27, 2017<br />LONDON — In revealing his investment position in Nestlé on Sunday, the hedge fund manager Daniel<br />S. Loeb urged the company to consider slimming down, as well as buying back its stock.<br />On Tuesday, Nestlé said it was indeed prepared to spend billions of dollars on buybacks — but the company also suggested<br />that it might pursue a number of acquisitions in addition to shedding businesses.<br />The company added that it would consider making acquisitions in fast-growing parts of its<br />business portfolio, including coffee, pet care, bottled water and consumer health care.<br />The plan suggests significant change at Nestlé, the Swiss food giant whose products include Kit Kat bars<br />and Stouffer’s frozen pizzas, at a time when its once-enviable growth rates have declined as consumer tastes change.
