Activist investor Third Point LLC has built a stake in eyewear group EssilorLuxottica SA, as the French-Italian company emerges from a boardroom feud, Reuters reported Aug. 25, citing sources familiar with the matter.
The New York-based investor met with EssilorLuxottica Executive Chairman Leonardo Del Vecchio, but details of the meeting could not be learned, two sources told the newswire. The size of the stake was also not disclosed.
Third Point and EssilorLuxottica did not immediately respond to S&P Global Market Intelligence's request for comment.
The development comes as EssilorLuxottica, formed after the €48 billion merger of French lens maker Essilor and Italian eyewear maker Luxottica, resolved a boardroom feud between Del Vecchio and Essilor chief Hubert Sagnieres over the appointment of a CEO for the new entity. The companies settled existing claims and legal proceedings, including a request for arbitration by Del Vecchio's company Delfin Sarl. Delfin is the largest shareholder of EssilorLuxottica, with a 32.13% stake in the company, according to Market Intelligence.
EssilorLuxottica continues its search for a chief executive by the end of 2020.
Meanwhile, Third Point has reportedly told investors that it intends to "make more activist investments where it feels it has an edge."
Daniel Loeb, CEO and founder of the activist fund, has been successful in pushing for changes at several companies. In June, the investor wrote a letter to Sony and proposed some key changes. Loeb also pressured Campbell Soup Co., in which it owns about a 7% stake, to offload its international operations and refrigerated-foods business. At Nestlé SA, where it controls 1.3% of the company, Third Point called for a number of changes at the Swiss food giant, including a potential sale of stake in cosmetics maker L'Oréal SA.
As of the end of the second quarter, the hedge fund's investments in consumer companies constituted its third-largest holding by dollar value, totaling $1.5 billion, according to data compiled by Market Intelligence.
