Third Point confirms 5.7% Campbell stake, says sale 'only justifiable outcome'
Third Point confirmed in a regulatory filing that its funds expended an aggregate of approximately $686,442,376.90 of their own investment capital to acquire 17M shares of Campbell Soup stock, representing a stake of 5.65%. In the filing, Third Point states in part: "The Reporting Persons acquired most of their Capital Stock following the Issuer's disastrous fiscal 3q18 earnings report and the unexpected departure of the Issuer's Chief Executive Officer Denise Morrison. The Reporting Persons believe that the subsequently announced strategic review, if conducted properly, will create significant value for the Issuer's shareholders...The Reporting Persons understand from our conversations with the Issuer's Interim Chief Executive Officer, Keith R. McLoughlin, and the Issuer's public statements that all options, including a sale, are being evaluated in the ongoing strategic review. The Reporting Persons are encouraged by recent press reports suggesting that a sale process is already underway. Given the significant obstacles facing the Issuer, the Reporting Persons believe that the only justifiable outcome of the strategic review is for the Issuer to be sold to a strategic buyer...The Reporting Persons insist that the Issuer's Board conduct a rigorous strategic review that results in the best outcome for investors. The Issuer's Board must weigh the value of the Issuer to a strategic buyer today versus the present value of alternate "go it alone" scenarios, adjusted for execution risk. The Group will continue to advocate strongly for shareholders during the strategic review and may seek Board representation if we conclude that the Issuer's Board failed to discharge its fiduciary duty."