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Nestle Responds to Third Point Pressure, Says 'Delivering Results'

Martin Baccardax

hit back at activist investor Dan Loeb and his Third Point LLC hedge fund Monday, insisting the company is "delivering results" for shareholders but noted that it takes "all shareholders' perspectives seriously" and values continued input. Nestle said that it's repositioned its portfolio to focus on high growth, high margin businesses, put CEO Ulf Mark Schneider in place to lead its Nutrition, Health and Wellness strategy and completed a global coffee sales partnership with Starbucks Corp. The comments followed a Sunday letter from Loeb and Third Point, which built a $3 billion stake in the Vevey, Switzerland-based group last year, calling for "urgency - rather than incrementalism" in changes to the group's broader strategy, which Loeb insists should be focused on three main business areas -- beverages, nutrition and groceries -- and must include the sale of divisions such as frozen foods and confectionary.