Activist Paulson takes bigger slice of Britain's Premier Foods (updated)
09/07/2018 13:04
(Adds context)
July 9 (Reuters) - Hedge fund Paulson & Co has tripled its
stake in Britain's Premier Foods Plc PFD.L , making it the
third largest shareholder in the company ahead of a crunch
annual meeting next week.
The meeting on July 18 could determine the fate of Gavin
Darby, chief executive of the maker of Oxo cubes and Mr Kipling
cakes.
The hedge fund led by billionaire investor John Paulson said
it held a stake of 6.08 percent in Premier Foods as of July 6,
up from 1.99 percent disclosed earlier.
Darby has been asked to step down by the company's second
largest shareholder Oasis Management which has called on
shareholders to vote against his re-election at the annual
meeting.
However, influential shareholder advisory firms ISS, Glass
Lewis and Pensions & Investment Research Consultants have backed
Darby, who has been in the role since 2013.
Premier Foods has been under shareholder pressure since it
rejected a twice-improved 65 pence per share takeover bid from
U.S. food-maker McCormick in 2016. Its shares traded at 40.30
pence by 1150 GMT on Monday.
Japan's Nissin Foods 2897.T is the largest shareholder in
Premier with a stake of 19.5 percent, according to Thomson
Reuters data.
(Reporting by Sangameswaran S in Bengaluru
Editing by Keith Weir)
((Sangameswaran.S@thomsonreuters.com; within U.K +44 020 7542
1810; outside U.K. +91 80 6749 3544; Reuters Messaging:
Sangameswaran.S.thomsonreuters.com@reuters.net))