Mon, Jul 22, 2019
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Stern's Rossbach blasts Elliott's Pernod investment

Thursday, December 13, 2018

Laxman Pai, Opalesque Asia:

Activist investor Elliott Management disclosed on Wednesday that it had taken a more than 2.5% stake in the family-backed French spirits company Pernod Ricard.

Elliott wants the French drinks company to try to improve its performance via cost cuts and a potential merger with a rival. It also pushed for the addition of independent directors and more rigorous cost-cutting measures.

But the chief executive of Pernod, Alexandre Ricard, rejected Elliott's charge that the group would be a perennial under-performer with weak margins, defending his family company as "a beautiful success story" focused on long-term value creation.

Obviously, the 46-year-old CEO, one of the grandsons of the founder Paul Ricard, is bracing for a fight now that one of America's most feared activist investors has amassed a stake.

In a statement obtained by Opalesque, Christopher Rossbach, Chief Investment Officer of private investment office J. Stern & Co. - long time investor in Pernod - came out in open blasting Elliott's latest big bet on Pernod.

He said: "Pernod Ricard is the world's second largest spirit company with strong brands and a broad geographic reach, in particular in the fast growing markets of Asia, including China and India."

"Pernod benefits from long-term investment drivers including the premiumization of alcohol consumption in developed markets where consumers are willing to spend more to drink better, more expensive and more diffe......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Crypto: U.S. market regulator issues guidance on custody of digital asset securities, Bitcoin's stunning growth makes it investable, admits legendary hedge fund manager, Institutional investments rise with bitcoin volatility. Wait, what?, Can blockchain build a better bank? Experts weigh in - The Ledger, Cryptocurrency startups get partial green light from Washington, Facebook's Libra cryptocurrency faces more backlash, China's central bank developing own digital currency in response to Libra[more]

    U.S. market regulator issues guidance on custody of digital asset securities From Reuters: The U.S. Securities and Exchange Commission (SEC) on Monday issued a notice on broker-dealer custody of digital asset securities, amid industry requests for clarity on whether they can hold such a

  2. PE/VC: Burger King in China and Turkey attracts private equity buyers, China's VC market is said to enter a downturn, VC industry makes slow progress on diversity[more]

    Burger King in China and Turkey attracts private equity buyers From Finance Asia: The world's largest franchisee of the fast-food chain outside the US is on the block. One wealthy Turkish family holds the key to a successful sale. Burger King is back up for sale in China and Turkey

  3. Hedge funds post best first half in decade, Viking Global funds surge, Blue Harbour's double windfall[more]

    Hedge funds post best first half in decade From Bloomberg: Hedge funds reported the best first half since 2009 as equity managers capitalized on the surge in stocks. Funds rose 5.7% from January through June, according to Hedge Fund Research Inc.'s asset-weighted index of managers. Equi

  4. Private real estate fundraising nosedives in 2Q 2019, hitting a five-year low[more]

    Laxman Pai, Opalesque Asia: Private real estate fundraising decreased significantly in Q2 2019 from the previous quarter, hitting a five-year low, Preqin said in its quarterly update on real estate. Forty-seven funds reached a final close, raising just $29bn, which marks a sharp decrease fro

  5. Regulatory: SEC reforms open door to BDC market shakeup, Regulatory rollback: First set of Volcker Rule reforms finalized[more]

    SEC reforms open door to BDC market shakeup From Reuters: The US Securities and Exchange Commission's (SEC) fund of funds proposals potentially open the door to a shakeup in the Business Development Company (BDC) market. Under the existing guidelines, regulated funds are prohibited from