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Report: Pernod Ricard to meet activist fund Elliott amid push for change

French alcoholic beverage company Pernod Ricard SA will meet with Elliott Management Corp. within January following calls by the activist hedge fund to improve the company's performance, Reuters reported Jan. 14, citing sources familiar with the situation.

The news comes about a month after Elliott acquired an over 2.5% stake in Pernod Ricard to push for change. The hedge fund said the liquor maker lacked "outside perspectives," leading to a loss in market share in the spirits industry.

According to Reuters, Elliott is urging the company to cut €500 million in costs and consider merging with another spirits company.

Pernod Ricard earlier confirmed holding discussions with Elliott in 2018 but also said it stood by the steps it had taken to boost performance. One of the sources told Reuters that Elliott is "hopeful" Pernod Ricard will deliver some of the changes it has earlier proposed, such as improving investor returns.

Analysts reportedly expect Pernod Ricard to announce new strategies to improve its margins before the release of its first-half earnings Feb. 7.