Campbell and Third Point in proxy fight

CHICAGO: Campbell Soup Co and hedge fund Third Point LLC have filed preliminary proxy materials urging the food company’s shareholders to vote in favour of two entirely different slates of board nominees.

Third Point, run by billionaire investor Daniel Loeb, launched a proxy fight last week to replace Campbell’s 12-member board. Loeb’s US$18bil hedge fund, which owns a 5.65% stake, said at the time that the soup-maker was in a “mess” and faulted its board for failing to take corrective action.

His move came a week after Campbell announced the results of a broad strategic review and said it would sell its international and fresh refrigerated-foods units.

Third Point’s 12-person slate includes William Toler, former chief executive of Hostess Brands, Munib Islam, a partner at Third Point, and George Strawbridge, a grandchild of chemist John Dorrance who invented condensed soup and ran Campbell nearly a century ago.

Campbell, which is pushing for its board to remain intact, said it did not endorse any of Third Point’s board nominees. Two other Dorrance grandchildren and a great grandchild currently sit on the board, and own a sizable stake in the company.

The current composition of the board reflects an appropriate mix of experience and qualifications that are relevant to the business and governance of Campbell, the company said.