HEDGE FUND DEMANDS SHAKE-UP AT DRINKS FIRM

Pernod Ricard is a French drinks firm dating back to 1797

Famous products include Havana Club Rum and Mumm champagne

Its Royal Salute ‘Tribute to Honour’ whisky cost £150,000 a bottle

The Ricard family has a 14.2pc stake worth £5bn Sales stood at £8.1bn in 2017-18

Firm produces 272m gallons of alcohol a year − that’s enough to fill 412 Olympic swimming pools A CUT-THROAT hedge fund is demanding changes at Pernod Ricard after building a stake of more than 2.5pc.

Elliott Management has taken aim at the performance of the world’s biggest drinks maker, saying it is lagging behind competitors.

Run by billionaire New Yorker Paul Singer ( pictured), Elliott has a fearsome reputation for taking aggressive legal action to get its way in corporate disputes. It typically builds up a stake in a firm that is struggling and then demands big changes to boost returns. Its raid on Pernod is its first foray into France, which has traditionally protected big firms from intervention by aggressive investors.

Elliott said Pernod, whose brands include Absolut vodka, Beefeater gin and Glenlivet whisky, could squeeze out higher profits and is a good investment opportunity.

The hedge fund is likely to push for it to sell drinks brands which are struggling with weak sales.

It has previously hounded out the bosses of companies including Scottish investment house Alliance Trust and US aircraft parts maker Avionics.