Third Point, the $12bn activist hedge fund firm led by Daniel Loeb, has built a 6% stake in Bath & Body Works and is pushing for board changes at the retailer, according to a report by Reuters citing a recent regulatory filing.
News that Third Point is positioning for a potential board challenge sparked a jump in Bath & Body Works’ stock price during after-hours trading on Friday.
Third Point now holds 13.7m shares of the business, having begun its purchase of the stock – which has dropped nearly 40% so far this year – last October.
In the 13D filing, Third Point criticised Bath & Body Works’ board for approving “excessive” executive compensation and called for cost reductions.
Bath & Body Works has a market capitalisation of $9.6bn. The company appointed former Unilever executive Gina Boswell as CEO last November.
