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Hedge fund manager Bill Ackman grasps 7.5% Mondelez stake

BILL ACKMAN screen shot

 

Bill Ackman, the activist hedge fund manager, has put a $5.5 billion bet on Mondelez  (7.5 per cent stake), the maker of  Oreo, Cadbury’s chocolate and Trident gum, in an attempt to force the food group to slash costs or put itself for sale.

The story was first reported by the Wall Street Journal.

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This is the second time in three years that US-based Mondelez, which has a market capitalisation of $73bn, has had to argeu with an investor activist, following turbulence by Nelson Peltz who tried to force the company to merge with PepsiCo’s snacks arm.

Mr Ackman and his fund, Pershing Square, holds 3 per cent of Mondelez shares directly, with the remaining interest through futures contracts and options.

Mondelez respond: “We welcome Pershing Square as investors in our company. We’ll continue to focus on executing our strategy and on delivering value for all our shareholders”.

Mr Ackman knows both Irene Rosenfeld, Mondelez chief executive, and 3G Capital well, putting him in a unique position to play them off against each other, claim the ficancial Times.

Pershing Square was an investor in Cadbury when Kraft launched a hostile bid for the chocolate maker in 2009 and Ms Rosenfeld, then chief executive of Kraft, stoked controversy in the UK by backing away from an apparent promise not to close Cadbury factories, according to ficancial Times.

The hedge fund is also an investor with 3G in Burger King, another food company where the Brazilian firm has installed management to impose cost cutting and zero-based budgeting.

Mr Peltz dropped his demand for the Pepsi merger last year to focus on pushing for cost cuts and Mondelez gave him a seat on its board.

 

Mondelez

Irene Rosenfeld 640x360

Mothers who pack lunch for their kids may wonder

whether cheese and ketchup really go together, but

Heinz and Kraft just became a great combination,  as

3G’s Jorge Paulo Lemann has had his way with More…

Scene Last Night: Jeffrey Immelt, Nelson Peltz, Courtney Love

Nelson Peltz is buying in the Mondelez section of

his portfolio supermarket aisle, and has been stocking

up on shares, according to Dakota Financial News.

Peltz purchased 270, 871 shares in the openmarket More…

Irene Rosenfeld 640x360

Mondelez CEO Irene Rosenfeld, on her visit to India,

Advertisement. Scroll to continue reading.

says the “blank check” given to her units in the country

is “bearing fruit.” India is one of the fastest growing

Asian countries, and More…

IN

– Giant international snack food and confectionery company

Mondelēz International, which is led by Irene Rosenfeld

as Chairman and CEO, announced yesterday that prominen

t hedge fund manager, and activist investor,  More…

Irene_Rosenfeld

A year and a half ago, in August 2012 private equity firm

Brynwood Partners, based in Greenwich Connecticut, announced that

one of its funds had entered into an agreement with,

what was at the More…

Howard Schultz Starbucks

–  Howard Schultz / Getty – The Starbucks Coffee Company,

led byChairman Howard Schultz, has just lost an important

arbitration ruling that will cost it US$2.76 billion in cold hard

cash- a huge sum which More…

Financier Nelson Peltz / Getty

Nelson Peltz, known as being among the most aggressive

activist investors, especially in the fast food business, has

long said his sights on the underachieving More…

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