Activist shareholders

Report: Campbell Soup close to truce with activist investor Dan Loeb

Cans of Campbell's soup are displayed on a supermarket shelf
Photo by Justin Sullivan/Getty Images

Campbell Soup is reportedly near a deal with Dan Loeb's Third Point to add two directors nominated by Loeb to its board and give the activist investor input on picking the company's new chief executive, four days before a key shareholder vote on a board shakeup, Wall Street Journal reports.

Why it matters: The deal — the terms of which Loeb largely rejected months ago per WSJ — would seemingly bring the battle between Third Point and Campbell to an end. However, it falls short of Loeb's activist campaign demands, which called for a slate of five board members handpicked by Third Point. The timing of the news is important too: either Loeb realized the likelihood of Campbell shareholders backing him was slim, per WSJ, or Campbell knew that a close vote would not have been enough to fend off Third Point.

Campbell Soup surprises Wall Street ahead of proxy battle

Cans of Campbell's soup are displayed on a shelf
Photo: Justin Sullivan/Getty Images

Campbell Soup got a rare win in its battle with activist investor Dan Loeb's firm Third Point, after the company reported strong sales in its snacks business and an improvement in its soup business in its latest quarter on Tuesday.

Why it matters: Campbell's proxy fight will face a key development next week when shareholders vote on Third Point's proposal to overhaul its board. Loeb has been calling for a breakup of the company after a string of disappointing quarters, and there's no guarantee that this quarter's results will be enough to prove to shareholders that the turnaround plan is working.

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