- French yogurt maker Danone (OTCQX:DANOY +1.2%) said yesterday it will sell its stake in China Mengniu Dairy, valued at more than $1B, to fund stock buybacks and return the proceeds to shareholders, aiming to appease disgruntled investors.
- The news comes as Danone's board meets to discuss its response to calls from investors such as Artisan Partners Asset Management and Bluebell Capital Partners for management changes.
- Danone Chairman and CEO Emmanuel Faber is facing demands for him to give up one or both of his positions at the company, which he has led since 2014, after Danone shares lost 25% of their value last year.
- Danone is failing to address a fundamental risk of growth in plant-based products, which is substituting its core dairy business, Karreta Advisors writes in a bearish analysis posted on Seeking Alpha.