Activist Investor Builds Stake in Reckitt, Financial Times Reports

-- Activist investor Eminence Capital has built its stake in Reckitt Benckiser to at least 0.5% following record lows for the stock due to infant-formula litigation in the U.S., the Financial Times reports citing unnamed sources.

-- Eminence said Reckitt's board could do more to improve its embattled operating margins, and its stake will likely increase calls for the sale of the company's baby formula division, according to the FT.

-- In March, Reckitt was ordered to pay $60 million as a jury ruled that one of its infant formulas caused the death of a premature infant, but the total liability from litigation could be anywhere between GBP400 billion and GBP8 billion, the FT reports.

-- Eminence wasn't immediately available for comment, and Reckitt declined to comment.

Full story: https://tinyurl.com/365nda79

Write to Michael Susin at michael.susin@wsj.com

(END) Dow Jones Newswires

May 21, 2024 05:35 ET (09:35 GMT)

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