Campbell Soup to sell non-core assets as big investor stews

NEW YORK Campbell Soup said on Thursday it plans to sell its international and fresh refrigerated-foods units and left open the possibility of putting the whole company up for sale, following a months-long review and pressure from a hedge fund to sell itself outright.

It is not clear if the plan will appease activist investor Dan Loeb, whose Third Point LLC announced a 5.65 per cent stake on Aug. 9 and immediately pressed for a sale of the entire company to a competitor as “the only justifiable outcome.”

If dissatisfied, Loeb could escalate his attack into a proxy fight and nominate a slate of directors within the next few weeks.

Campbell’s interim chief executive Keith Mcloughlin said the board considered the option of a complete sale during its review and ended the process “with a completely open mind.”

Selling the two smaller units could make Campbell a more attractive takeover target by turning its focus back to its core soup and salty snacks businesses.

The 149-year-old company, which revolutionized the homecooking industry with easyto-prepare soups and low-cost production techniques has been struggling to attract young consumers to its namesake soups and Pepperidge Farm cookies.

Campbell’s latest foray into fresh food has faltered while Wall Street has questioned an acquisition strategy that increased debt while costs are increasing. Its shares have fallen by a third over the past two years.

The company said on Thursday it would use the proceeds of the unit sales to reduce its debt.

Reuters