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.
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