Posted on by

Third Point’s Dan Loeb pens a pointed letter to Bath & Body Works – What could happen next



Share

An employee with a face mask and shield cleans the door of Bath & Body Works store on July 21, 2020 in Pembroke Pines, Florida.Johnny Louis | Getty Images News | Getty ImagesCompany: Bath & Body Works (BBWI)Business: Bath & Body Works operates a specialty retailer of home fragrance, body care, soaps and sanitizer products. In August 2021, Bath & Body Works (formerly known as L Brands) completed the separation of its Victoria’s Secret business. Stock Market Value: $9.68B ($42.42 per share)Activist: Third PointPercentage Ownership:  6.02%Average Cost: $38.16Activist Commentary: Third Point is a multi-strategy hedge fund founded by Dan Loeb. The fund selectively takes activist positions. Loeb is one of the true pioneers in the field of shareholder activism and one of a handful of activists who shaped what has become modern-day shareholder activism. He popularized the poison-pen letter at a time when the measure was often necessary. As times have changed, he has transitioned from the poison pen to the power of the argument. Third Point has amicably obtained board representation at companies like Baxter and Disney, but also will not hesitate to launch a proxy fight if the firm is being ignored. What’s Happening?Third Point initially filed a 13D on Bath & Body Works (“BBWI”) on Dec. 8, 2022, and expressed its concern with the company’s executive compensation structure, its financial discipline, investor communication and board composition. On Feb. 22, Third Point sent a letter to BBWI’s board announcing that it intends to nominate a slate of director candidates for election. Third Point believ …

Read More