Tim Hortons’ Investors Skeptical of Highfields Capital’s Activist Proposals

May 6th, 2013
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Another activist U.S. hedge fund is attempting a cross-border shakeup with a Canadian company. According to Reuters, Highfields Capital is using its 1.5 percent stake in Tim Hortons Inc, a well known coffee chain in Canada, to pressure the board of directors into making several strategic changes, including scaling back its U.S. expansion plans.

Highlfields Capital follows similar attempts by Pershing Square Capital and Jana Partners LLC, both U.S. based activist hedge funds which have recently battled with the directors of Canadian companies. Bill Ackman’s Pershing Square won its battle with Canadian Pacific over the company’s poor management performance. However, Highfields Capital could face strong resistance from institutional investors who have been pleased with the Tim Horton’s performance. Notably, shares of Tim Hortons Inc have gained nearly 60 percent over the last five years.
For Detailed Investor Profiles on these Investors, click below:
Highfields Capital Management
JANA Partners
Pershing Square Capital Management
Related People: Barry S. Rosenstein; Gary Claar; Jonathan S. Jacobson; Nicholas Botta; Richard L. Grubman; Roy J. Katzovicz; Scott Ferguson*; William 'Bill' Ackman
Related Entities: Highfields Associates LLC; Highfields Capital Hedge Fund; Highfields Capital Ltd; JANA Capital LLC; JANA Master Fund LP; JANA Nirvana Fund LP; JANA Partners LP; JANA Piranha Fund LP; Leucadia Corporation (NYSE: LUK); Pershing Square Capital; Pershing Square IV; Pershing Square LP
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles; Hedge Fund Spotlight Reports

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