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NESTLE’S STOCK PRICE HITS RECORD HIGH

By Sera Akinci  |  28/06/2017 08:46
High-profile US investor, Daniel Loeb, has stated that he recently bought a $4billion stake in Nestlé, leading to record highs in the company’s stock prices this Monday.

This means that Nestle has already seen big changes this year, not least in the company’s new CEO stepping in in January. Ulf Mark Schneider announced that they will be making major changes in how Nestle business operates, outlining the company’s plans for investing in ‘’healthier foods’’.

Why is this important for the markets?

Nestle’s shareholders seem to be backing Loeb’s ideas. Loeb wants Nestle to sell his ownership of cosmetic company L’Oreal by 23%, as it does not sit at the core to the company’s operations. On the other hand, he wants Nestle to buy more of its stocks, which will eventually help Nestle to boost its own stock prices.

This is another indication of the Americans demanding more of European companies, and a sign that some big European businesses are facing pressure to become more ruthless in their company strategies.
 
Today, Nestle’s stock prices increased 1.42% to 85.50 CHF at 09:16 GMT. The chart below indicates that the Netle stock prices have been on the rise since the end of November. Also, in the last 5 years, the share prices have increased from 56 Swiss Francs to slightly above 80 francs before Loeb took his stake.
 


Furthermore, Nestle’s CEO Schneider’s next challenge will be to defend the long-term outlook for the biggest food company in the world.

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