Activist Peltz wants to raise Danone stake: report

PARIS Fri Nov 16, 2012 4:11pm IST

Stocks

   

PARIS (Reuters) - Activist investor Nelson Peltz wants to increase his stake in French food group DanonePA> to gain a say in its management, the Wansquare website said on Friday, without citing its sources.

Peltz and Danone could not immediately be reached for comment. At 1035 GMT, Danone shares were up 0.9 percent at 48.75 euros, among the top gainers on the Paris CAC-40 index.

Peltz, co-founder of U.S. investment firm Trian Fund Management LP, said last week it bought a 1 percent stake in Danone, the world's largest yoghurt maker.

The billionaire, who often wrestles with management at companies he considers undervalued or poorly run, has said Danone was undervalued and should implement cost cuts and other measures to boost its stock price.

Danone, which this week is holding an investor seminar in Russia, has so far refrained from reacting to Peltz' comments.

Few details have emerged from the seminar which is closed to the press.

Credit Suisse, however, said in a note on Friday that Danone Chief Financial Officer Pierre-Andre Terisse had told investors that Danone faced similar margin pressures in 2013 as in 2012.

"Exactly what this means is open to interpretation, but another 50 basis points margin decline in 2013 year on year would be a 'prudent assumption' in our view," the analysts said.

Danone issued a surprise profit warning in June after Spanish consumers switching to cheaper yoghurts hit growth at its core dairy division.

It warned at the time that its 2012 operating margin would decline by 50 basis points to 14.2 percent. (Reporting by Dominique Vidalon; Editing by Christian Plumb and Mark Potter)

Politics

REUTERS SHOWCASE

Fund Raising

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

Hacking Attack

Hacking Attack

N.Korea says did not hack Sony, wants joint probe with U.S.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage