BILLIONAIRE’S £3bn BID TO SWEETEN NESTLE’S PROFITS

ACTIVIST investor Dan Loeb has snapped up a £2.8bn stake in Nestle after launching an attack on the food conglomerate.

Loeb said he had taken a 1.3pc stake through his hedge fund Third Point and has already begun ‘productive conversations’ with the KitKat and Rowntree’s confectionery owner about improving its margins.

It is the biggest bet of the billionaire’s two-decade career.

Third Point said it was ‘rare to find a business of Nestle’s quality with so many avenues for improvement’. Nestle has been under pressure to boost profitability after rival Unilever fought off a £115bn takeover approach from Kraft Heinz earlier this year.

Unilever responded by promising to increase shareholder returns and putting its spreads business, which includes Flora and I Can’t Believe It’s Not Butter, up for sale. Meanwhile, rival Reckitt Benckiser has moved to sell its food operation after buying baby formula-maker Mead Johnson.

Loeb said Nestle’s share price and performance did not compare well with rivals.