(News Bulletin 247) – Estée Lauder shares opened higher on the New York Stock Exchange on Monday after the New York Post reported a possible interest from activist investor Nelson Peltz for the American cosmetics group.
According to information from the tabloid, the billionaire would even consider a major restructuring of the company, which could involve the dismissal of its current general manager, Fabrizio Freda, or even an outright sale of the company.
The NYPost points out that it could not determine if Peltz had already made the acquisition of Estée Lauder shares, but notes that internal sources indicate its intention to mobilize certain shareholders of the group.
‘A number of directors and institutional investors believe that the CEO has gone astray,’ the sources reportedly reported. ‘They are now focusing on getting closer to activist investors’, adds the newspaper.
The New York Post explains that Estée Lauder constitutes an interesting target for Peltz because of the fall of 17% of its share price last Wednesday, following disappointing quarterly results.
The daily recalls that LVMH had expressed, before the Covid crisis, its interest in Estée Lauder provided that the family group is a seller.
Around 10 a.m., Estée Lauder shares were up almost 2%, marking one of the biggest gains in the broader S&P 500 index, which was down 0.1% at the same time.
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