Chicago Tribune – The leader of an activist hedge fund with a significant stake in Sara Lee Corp. has been added to the foodmaker’s board of directors.

Downers Grove-based Sara Lee said Thursday that it is expanding its 10-member board by one, naming Jeffrey Ubben, founder and chief executive of ValueAct Capital, to the new spot. Last winter, San Francisco-based ValueAct bought a 5 percent stake in Sara Lee, maker of bread, hot dogs and meat products sold under such brands as Hillshire Farms and Jimmy Dean.

Activist investors often buy into what they perceive as undervalued companies and then urge significant changes. But ValueAct is considered less strident than some other activist funds, saying at the time of its purchase that it had no plans to push for strategic change at Sara Lee and was comfortable with the firm’s direction.

Neither Sara Lee, which is in the midst of a multiyear turnaround effort, nor ValueAct could be reached.

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New York (HedgeCo.Net) -The much anticipated annual meeting of railroad operator CSX took an odd turn when results of Board elections were kept from the media and CSX head Michael Ward abruptly ended the meeting.

The elections were a subject of great debate, after months of pressure brought on by hedge funds TCI and 3G Capital Partners, who during a 6-month long proxy battle nominated a dissident slate for the 12-member board.

According to CSX, results weren’t readily available because they were “too close to call.” The hedge funds believed that they won at least two seats and maybe four, said Snehal Amin, founding partner of TCI. The hedge funds declared it was a “victory for all shareholders.”

"Our proxy advisors are trying to figure out with large financial institutions whether they changed their votes," Amin said, referring to the shareholders. "Hopefully not enough changed their minds to affect the outcome."

The proxy battle was sparked by the hedge funds’ desire to elect those with experience in the railroad industry to the board, something they say the current board lacks. Hedge funds like TCI and 3G are known for pushing for strategic change within companies to fuel high returns for shareholders.

Ward, who has resisted the hedge funds advances, repeated his position to the crowd gathered in New Orleans. "CSX has a disciplined management that favors building lasting shareholder value. The board sets aggressive goals and holds management accountable for achieving them."

To which Amin shared his view, “We believe CSX can and should be the best railroad in America. [Our candidates] have real railroad experience, they know the right questions to ask and have the economic incentives to do so."

CSX says the results of the vote will be announced on July 25^th at the company’s headquarters in Jacksonville, Florida.

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

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New York (HedgeCo.Net) – Soft-drink maker Cott Corp. has gotten a vote of confidence from hedge fund Crescendo Partners, along with a boost in share value.

Crescendo has raised its stake to 8.7% in the struggling company, and will meet with company executives to discuss performance and “potential changes in the composition of the management team and the board of directors.”

After years of lagging stock prices, shares of Cott rose almost 14% to $3.61 yesterday with the news.

Crescendo, along with other hedge funds and private equity groups, often seek seats on the board and positions in management in order to bring about strategic change and to garner higher returns.

Crescendo was recently involved in a bitter proxy battle with Charming Shoppes Inc. after wanting to place members of their team on the board of the plus size women’s clothing manufacturer. The two companies eventually reached a settlement, with Crescendo receiving two spots on the board.

In a recent filing with the SEC, Crescendo stated that they have “engaged in and intends to continue to engage in discussions with management and the board of directors of the issuer concerning the business, operations and future plans."

Cott, who’s best known for their RC Cola product, has recently lost some shelf space at Wal-Mart, their biggest client. Mario Pilozzi, the former CEO of Wal-Mart Canada Corp., has agreed to work as an executive should Crescendo attain their board seats. Cott is currently run by CEO David Gibbons.

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
Be sure to check out our sister sites. For more information, visit www.hedgeconetworks.com

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