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The Nestle chairman defends the long-term strategy of the stock-maker

FILE PHOTO: Paul Bulke, Nestle's Chairman, leaves 10 Downing Street in London, UK, May 30, 2018. REUTERS / Simon Dawson
FILE PHOTO: Paul Bulke, Nestle's Chairman, Leaves Downing Street 10 in London
Thomson Reuters

From Jessica DiNapoli

DAVOS, Switzerland (Reuters) – Nestle SA chairman Paul Bullock said on Friday he would not seek short-term efforts at the expense of long-term success, in the face of stock-makers who know how to "exert pressure". "

Third Point LLC Hedge Fund, headed by shareholder Daniel Lieb, took a $ 3 billion stake in Nestle in 2017 and said the manufacturer of KitKat bars and Perrier water could double its earnings per share by 2022 if divide your business.

"If implementation capacity is there, we have to do it, if this threatens my future thinking and if it compromises my future success, we should not do that," said Bulke at the World Economic Forum in Davos.

"My job is to explain this, to go around, talk to investors and listen to them all, too."

Bulcke does not mention Loeb by name in the corporate flexibility panel on the last day of the weekly conference in a Swiss ski resort. A Swiss journalist had asked Bulke how he dealt with a hedge fund response in New York that requires income growth.

"He is an investor, we have many others," said Bulke, who was CEO of Nestlé from 2008 to 2016.

(Report by Jessica DiPapoli, Editing by Mark Trevelyan)

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