Danone needs new independent chairman instead of Faber, says investor Artisan
Reuters
Published Mar 03, 2021 04:43AM ET
Updated Mar 03, 2021 05:05AM ET
PARIS (Reuters) - U.S investment company Artisan Partners (NYSE:APAM) on Wednesday said that Danone needed to appoint a new, independent chairman, adding more pressure on Emmanuel Faber who holds that position at the French food company.
This week, Danone said Faber - who until now has combined the CEO and chairman roles - would stay on as chairman and oversee the search for a new chief executive.
"With Mr. Faber as chairman, the incoming CEO will not have the appropriate latitude to set a new direction," wrote Artisan, which has a stake of around 3% in Danone.
Artisan Partners' letter to Danone's board of management echoed a similar position from investment company Bluebell, which also said Danone should appoint another independent chairman instead of Faber.
Activist investors say Danone - whose brands include Evian and Actimel - needs a management revamp as they believe that under Faber's tenure, Danone's sales growth, margins and share price have lagged rivals, including Perrier-owner Nestle and Unilever (NYSE:UL), the maker of Cornetto ice cream and Lipton tea.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.