Danone Shareholder Asks for Changes in Corporate Governance, Strategy
February 11 2021 - 4:17AM
Dow Jones News
By Olivia Bugault
Investment company Artisan Partners is calling for corporate
governance and strategy changes at Danone SA in a letter addressed
to an independent board member of the French food company, Gilles
Schnepp.
"Unfortunately, the financial performance of Danone is not
consistent with the quality of its assets," Artisan Partners said
on Thursday, adding that "on almost every measure, Danone's
performance has lagged."
Artisan Partners--which said it has a stake of more than 3% in
Danone--is asking for a separation of the role of chairman and
chief executive officer at the food company. "Further, proper
corporate governance standards require truly independent directors,
to the exclusion of former company management," it added.
Artisan Partners also criticized Danone's capital allocation
that is value-destructive, while underinvestment in innovation and
product development is also an issue, it said.
"Danone may also be considering merger, acquisition or disposal
activity that could further complicate or weaken the business,"
Artisan Partners said.
Although Danone has great assets and its brand is loved by
consumers, its margin has been underperforming compared to its
peers, Artisan Partners said.
Shares at Danone are up 2.6% at EUR54.72.
Danone wasn't immediately available for comment.
Write to Olivia Bugault at olivia.bugault@wsj.com
(END) Dow Jones Newswires
February 11, 2021 04:02 ET (09:02 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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