Lindt faces shareholder revolt after pricing mistakes and CEO departure
Influential investors are calling for radical changes to the board of directors at truffle maker Lindor, with shares down around 25% for the year.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM INFOMONEY · 2 MIN
Influential investors from Lindt & Spruengli demand radical changes in the board of directors of truffle manufacturer Lindor, at a time of strong share depreciation. According to InfoMoney, based on Reuters, the report is dated November 4, in Zurich.
The demand comes from five important investors interviewed for the report, three of them among the company's 20 largest shareholders. The reports converge on a harsh diagnosis: incorrect pricing weighed heavily on share prices.
The episode took on a more serious tone with the departure of the chief executive (CEO), dismissed in October last month. Lindt is now looking for a new CEO, and succession takes center stage.
The numbers help explain the irritation. According to InfoMoney, shares are down around 25% for the year. The causes cited are downward revisions to the company's prospects and weak performance in Europe.
What is at stake goes beyond the change of command. When shareholders with relevant stakes demand radical changes, the dispute tends to influence pricing, execution in Europe and the choice of the next executive.
What changes for the investor
The case shows how pricing errors and outlook revisions can weigh on the value of a share. The departure of the CEO and the search for a successor are events that the market tends to follow closely, as they can signal changes in strategy. The facts found do not indicate an outcome or provide price projections, so the board's next decisions are the main point of reference for reading the case.
Automatically translated from Portuguese.
