Campbell Soup has ended a months-long battle with Third Point by promising the activist investor can choose two new board members.
The hedge fund, which will now have a say in selecting Campbell’s new chief executive, has been locked into a dispute with the soup maker over its struggling share price and a takeover spree which sent debt soaring.
The deal avoids a bust-up before a vote at the company’s annual meeting this week.
Third Point owner Daniel Loeb had planned to replace the entire board at Thursday’s meeting.
Instead the investor, who holds a seven per cent stake in Campbell, will get to present his views at two board meetings and two sit-downs with the chief executive over the next 12 months.
In return Loeb has promised to drop a lawsuit which alleged that Campbell had sent misleading information to shareholders.
“We will continue to maintain an active and productive dialogue with all of our shareholders, including Third Point, as we execute our strategic plan and build a stronger and more focused company that creates long-term value for shareholders,” Campbell’s interim chief executive Keith McLoughlin said.
Loeb said: “Third Point looks forward to working collaboratively with Campbell to improve value for all shareholders at this important time for the company.
“We are confident that Campbell will find a world-class CEO who is given the necessary support to execute on the strategy to strengthen the company.”