Tim Hortons Inc., a restaurant chain, recently outlined plans to address the issues raised by activist investor, Highfields Capital. Another pressure confronts Tim Hortons from such investor.
On Monday, US based hedge fund Scout Capital Management stated that it has increased its stake in the Canadian chain to 5.5%. This was from the previous 1.5% as of the end of March.
Scout Capital also said that it has plans to continue to talks with the senior management of Tim Hortons. The discussion would be on matters relating to capital expenditures, capital structure and magnitude of share repurchases. Other matters including management compensation is also planned to be talked about.
A spokesperson for Tim Hortons said in an email that the company is driven on continuing its track record of creating shareholder value. She also added that Tim Hortons always welcome constructive discussions with its shareholders. The spokesperson declined to provide further details on the extent of the discussion.
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