McDonald's rejects shareholder plan to restructure
McDonald's Corp. on Wednesday rejected a plan put forward by a major shareholder that called for the world's largest fast food company to restructure, form a new company out of its company-held restaurant unit and sell a 20 percent stake to the public.
McDonald's two months ago rejected a previous plan advocated by the shareholder, hedge fund Pershing Square Capital Management LP.
In a New York meeting on Wednesday, Pershing founder William Ackman called on the company to sell 1,000 of its 8,000 company-owned restaurants in mature markets to franchisees and reinvest that money in building markets in Asia, Russia and elsewhere.
Ackman told an overflow crowd of investors and analysts that McDonald's company-owned "McOpCo" restaurant division is underperforming compared with peers. By going public, the division would be forced to disclose that financial performance to the market and allow it to reward managers with share incentives for improvement, he said.
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Source - Reuters
In a New York meeting on Wednesday, Pershing founder William Ackman called on the company to sell 1,000 of its 8,000 company-owned restaurants in mature markets to franchisees and reinvest that money in building markets in Asia, Russia and elsewhere.
Ackman told an overflow crowd of investors and analysts that McDonald's company-owned "McOpCo" restaurant division is underperforming compared with peers. By going public, the division would be forced to disclose that financial performance to the market and allow it to reward managers with share incentives for improvement, he said.
External Source - For the complete article click here
Source - Reuters
