BREAKING NEWS : Father and son identified in deadly Leith Street double shooting Full Story
BREAKING NEWS : Allen County coroner identifies man found shot on Lewis Street Full Story
BREAKING NEWS : Infant announced as second death in Chancery Place house fire Full Story

Why Campbell Soup might go up for sale

Campbell Soup's stock has passed its expiration date.Shares are down 20% in the past year, which may ...

Posted: Aug 2, 2018 5:56 AM
Updated: Aug 2, 2018 5:56 AM

Campbell Soup's stock has passed its expiration date.

Shares are down 20% in the past year, which may be why activist investor Dan Loeb is reportedly looking to spice things up.

The Wall Street Journal reported late Tuesday that Loeb's investment firm, Third Point LLC, now has a more than $300 million stake in Campbell Soup. Shares of Campbell Soup rose 2% on the report.

Separately, The New York Post reported Loeb has hired an investment banker and is pressuring the company and its top investors to put Campbell Soup up for sale.

Third Point declined to comment about the reports.

A spokesperson for Campbell Soup said the company doesn't comment on rumors or speculation, but added that "we maintain an open, engaged dialogue with all of our shareholders, and welcome all investments in our company."

The company announced in May that it would conduct an operational review of its business. The review is expected to end in late August.

So it's still possible that the board will recommend a sale of Campbell Soup. And that could make sense given the turmoil in the executive suite.

CEO Denise Morrison, who had been atop Campbell Soup since 2011, abruptly announced her retirement in May after the acquisition of snack maker Snyder's-Lance. Campbell Soup paid $6 billion for the company, but the integration didn't go smoothly, according to reports.

Keith McLoughlin, the former head of appliance maker Electrolux and a board member at Campbell Soup, was named interim CEO

Related: Campbell Soup Denise Morrison leaves the company

The WSJ said in its report Tuesday that Loeb has been talking to McLoughlin about a strategic review because of poor earnings.

Soup sales have slumped lately too. And a push into fresh and organic food hasn't panned out as well as hoped.

But if Loeb wants Campbell Soup to put itself on the shopping block, he must convince family ownership that it's a good idea. Three descendants of condensed soup maker John Torrance collectively own about 42% of its shares.

Those shareholders may be amenable to the idea of a deal though. After all, the packaged food industry has played host to a flurry of mergers recently. Companies are trying to get bigger in an attempt to have more pricing power.

Many food makers have been hurt by deflation in the grocery industry. Intense competition between Whole Foods owner Amazon, Walmart, Costco and supermarket king Kroger have led to a drop in prices for a lot of food items.

Related: Campbell Soup is piping hot after reported M&A interest

That's great news for consumers, but it's terrible for the food companies and their investors.

And while many of the food deals have been smaller acquisitions for niche companies, ConAgra recently announced plans to buy Birds Eye maker Pinnacle Foods for nearly $11 billion. Campbell Soup is worth about $12.5 billion.

Kraft Heinz -- backed by Warren Buffett -- as well as cereal giant General Mills have been reported to have interest in a deal for Campbell Soup.

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 117450

Reported Deaths: 3580
CountyConfirmedDeaths
Marion21403766
Lake10618323
Elkhart6667111
St. Joseph6576110
Allen6292203
Hamilton4909109
Vanderburgh371931
Hendricks2747123
Monroe262736
Tippecanoe252313
Johnson2338124
Clark223657
Porter217647
Delaware198562
Cass19549
Vigo184327
Madison168975
LaPorte147441
Floyd138963
Warrick134440
Howard131863
Kosciusko124817
Bartholomew117957
Marshall101224
Dubois99119
Boone98646
Grant93334
Hancock93243
Noble92532
Henry80926
Jackson7689
Wayne76814
Morgan72938
Daviess67728
Shelby67729
Dearborn66528
LaGrange63911
Clinton60914
Harrison58724
Putnam58112
Gibson5305
Knox5259
Lawrence51529
Montgomery51121
DeKalb48711
White48614
Decatur45839
Miami4383
Greene42735
Fayette42313
Jasper3992
Steuben3877
Scott38111
Posey3400
Sullivan33812
Jennings31612
Franklin31125
Ripley3038
Clay3025
Orange28824
Whitley2796
Carroll27713
Adams2743
Wabash2718
Washington2691
Starke2677
Wells2654
Spencer2593
Jefferson2483
Huntington2453
Fulton2412
Tipton22822
Perry22113
Randolph2207
Jay1880
Newton17311
Owen1711
Martin1680
Pike1621
Rush1574
Vermillion1300
Fountain1282
Blackford1203
Pulaski1131
Crawford1080
Brown1043
Parke1032
Benton870
Ohio797
Union790
Switzerland690
Warren401
Unassigned0226

Ohio Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 150809

Reported Deaths: 4741
CountyConfirmedDeaths
Franklin26961607
Cuyahoga17490656
Hamilton13191315
Montgomery7883163
Lucas7322364
Butler6040111
Summit5332252
Marion310347
Warren309649
Mahoning3073281
Stark2883175
Pickaway267844
Lorain231786
Delaware228120
Fairfield211853
Licking193663
Columbiana193280
Wood190272
Trumbull1896132
Clark181040
Clermont173123
Lake163851
Medina147539
Greene146533
Miami145451
Allen144169
Portage115566
Mercer113218
Erie94647
Tuscarawas93620
Wayne93668
Richland90319
Ross89024
Madison83012
Darke80442
Geauga72349
Belmont72227
Hancock71210
Athens7072
Ashtabula65948
Lawrence65922
Shelby64910
Auglaize6089
Putnam60823
Sandusky57720
Huron5517
Union5452
Scioto5117
Seneca48514
Ottawa46930
Preble44015
Muskingum4213
Holmes3909
Jefferson3364
Defiance32511
Henry31814
Logan3123
Champaign3083
Clinton29913
Perry2989
Brown2902
Knox28615
Jackson2636
Morrow2612
Washington26123
Hardin25613
Fulton2461
Crawford2446
Ashland2424
Coshocton23411
Fayette2326
Highland2303
Williams2133
Wyandot21312
Pike2000
Gallia19113
Meigs17610
Guernsey1708
Hocking1669
Carroll1527
Adams1354
Van Wert1233
Monroe11018
Paulding1100
Harrison643
Morgan490
Vinton473
Noble330
Unassigned00
Fort Wayne
Broken Clouds
55° wxIcon
Hi: 60° Lo: 43°
Feels Like: 55°
Angola
Overcast
54° wxIcon
Hi: 56° Lo: 45°
Feels Like: 54°
Huntington
Overcast
55° wxIcon
Hi: 58° Lo: 43°
Feels Like: 55°
Decatur
Overcast
61° wxIcon
Hi: 60° Lo: 43°
Feels Like: 61°
Van Wert
Overcast
61° wxIcon
Hi: 61° Lo: 43°
Feels Like: 61°
Rain moves in for Monday
WFFT Radar
WFFT Temperatures
WFFT National

Community Events