What's going on?

They say that too many cooks spoil the broth. On Monday, after two months of fighting, Campbell Soup reached a deal with a rogue shareholder � but its stock reduced 3%.

What does this mean?

Third Point, an activist investor (one which owns a sizable chunk of a company and uses it to exert influence) with a 7% stake in Campbell Soup, started stirring the pot back in September, initially seeking to oust the company�s entire board. Third Point thought Campbell�s chefs were doing a poor job running things: at the time, the stock price had lost around 30% of its value since 2016.


But the dispute has now come off the boil. Campbell�s board will remain in place, with the addition of two members selected by Third Point � and the activist investor will also get a say in choosing Campbell�s new CEO.

Why should I care?

For markets: Blowing hot and cold.

Campbell�s has been badly in the soup for a while now. Along with other consumer staples companies (that sell things people need rather than want), Campbell�s has been struggling to raise prices even as it�s spent big on adding new product lines. The canned soup company is also battling health trends: as consumers seek out fresh food, Campbell�s cream of mushroom is being left on the shelf. Investors selling the stock on Monday may have been hoping that Third Point would win a bit more power.

The bigger picture: Sometimes an activist win is a win for all investors.

As activists� demands are typically aimed at raising share prices, when they get their way it can be a win all round. After UK hotel and restaurant owner Whitbread was pushed to sell Costa Coffee to Coca-Cola in September, its shares shot up. And Nestl� is currently being pressured by none other than Third Point to spin off underperforming parts of its own business, trimming the fat to improve growth.