Under pressure from shareholders, the chief executive officer of France-based Danone said he is prepared to sell China Mengjui Dairy Co. so he can goose the share price of his company.
Emmanuel Faber said he would use the sale for about $2 billion US to buy back shares. That news was enough to push up Danone’s share price by 2.6 per cent.
The announcement came just before Danone’s board meets to discuss its response to calls from investors such as Artisan Partners Asset Management Inc. for management changes.
The investors are pressuring Faber to give up one or both of his positions as chief executive and chairman of the board that he has held since 2014.
So, let me get this straight. The boss would sell a valuable asset to save his skin, not necessarily because it's a wise sale from an investor's point of view.