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Dan Loeb’s Third Point has built a sizeable stake in consumer giant Colgate-Palmolive, according to CNBC’s David Faber.
Loeb sees hidden value in Colgate’s subsidiary Hill’s Pet Nutrition, a pet food company, if it were spun off. He said as a stand-alone business, Hill’s could deliver even faster growth and better margins, and could achieve a valuation close to $20 billion on its 2023 numbers.
The activist and hedge fund manager added that consolidation in the consumer health sector point to more opportunities for Colgate.
Shares of Colgate jumped nearly 3% on Tuesday. The stock is still down about 15% this year.
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