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DOV WI - Dover News Story

$75.78 1.5  2.0%

Last Trade - 08/05/18

Sector
Industrials
Size
Large Cap
Market Cap £15.75bn
Enterprise Value £17.56bn
Revenue £4.94bn
Position in Universe th / 6858

UPDATE 1-Third Point takes stake in Dover Corp, urges changes -letter

Fri 20th October, 2017 2:54pm
(Adds comments about Nestle) 
    BOSTON, Oct 20 (Reuters) - Billionaire investor Daniel 
Loeb's hedge fund Third Point LLC bought a stake in Dover Corp 
 DOV.N  during the third quarter and is urging the industrial 
conglomerate to sell off its energy business among other things. 
    If the company heeds the hedge fund's advice, "we believe 
there is significant additional upside in the investment," Third 
Point wrote in a letter to clients, seen by Reuters. The fund is 
talking to management and wants the company to divest its energy 
business, allocate capital more efficiently and address its 
"under earning in its core industrial portfolio." 
    The hedge fund also gave high marks to Nestle  NESN.S  CEO 
Mark Schneider for setting specific margin targets and agreeing 
to sell certain assets. Third Point made a $3.5 billion 
investment in Nestle in June, less than half a year after 
Schneider in January became Nestle's first outside CEO in 
decades. 
    "We are pleased with the overall shift in tone," at the 
company, Third Point said in its letter. Schneider recently set 
out plans to reach a 17.5 percent to 18.5 percent margin target 
and the company plans to buy back $21 billion worth of stock. 
    Third Point, which manages roughly $16 billion for clients, 
returned 14.5 percent in the first nine months of the year. It 
expects earnings at U.S. companies to remain solid. It has cut 
back its credit portfolio since the start of 2016 at a time its 
analysts don't see any "deep weakness in any area or geography." 
 
 (Reporting by Svea Herbst-Bayliss; Editing by Chizu Nomiyama 
and Phil Berlowitz) 
 ((svea.herbst@thomsonreuters.com; +617 856 4331; Reuters 
Messaging: svea.herbst.thomsonreuters.com@reuters.net)) 
 
Keywords: HEDGEFUNDS THIRDPOINT/
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