Daniel Loeb's hedge fund Third Point LLC is demanding a cache of records from Campbell Soup Co (NYSE:CPB) as part of an increasingly bitter battle with a company whose board of directors he wants to replace.
Third Point pointed to comments made by Campbell CEO Keith McLoughlin, who said the company relied on acquisitions, lacked accountability and this, in turn, led to poor execution.
"These admissions demonstrate that shareholders are entitled to the records of the company's decision-making processes to investigate this unquestionable mismanagement and further instances of wrongdoing," the Third Point letter said.
Third Point has 5.65% stake in Campbell, which has 300.65 million shares outstanding and a float of 158.2 million.
Third Point is particularly interested in Campbell's $6 billion acquisition of Synder's Lance where the company flip-flopped on what it will do to the company's bottom line.
"It is unfathomable that Campbell management could improperly represent to shareholders that the largest acquisition in the company's history would be accretive and just five months later admit that they blew it," the letter said.
Shares of Campbell rose 0.9% to $36.84 in morning trade on Wednesday.
Campbell hit back at Third Point in a letter to shareholders Wednesday.
The company accused Third Point of "attempting to deprive shareholders of the future value potential of Campbell by forcing a sale of your company while we are executing on our strategic plan to create value."
It added that the board "strongly objects to Third Point's aggressive and short-sighted tactics and urges shareholders to reject the hedge fund's misguided efforts and 'one-point' agenda for Campbell."
Campbell Soup has set a November 29 date for shareholders to vote on the company's board.