The shares of Sysco Corporation (NASDAQ:SYY) shot up by 7.42% as Billionaire Investor Nelson Peltz acquired 7.08% of the shares. This has been the highest rise in the stock prices that the Food Distribution Giant, Sysco Corporation has seen in the recent times. The stocks were at $41.38, when the markets closed today.
According to the reports, Trian Partners became the biggest individuals share holders of Sysco Corporation after they bagged 42 million shares at an approximate price of $1.6 billion. SYSCO has already confirmed its ties with Trian Partners.
The Food Distribution giant added that the company is ready to adjust to a few new policies, which will in turn come to the aid of the customers only. The returns are also expected to good as the policies will have the highest ratio of profitability. Further information about the upcoming policies will be announced by SYSCO on the Investor’s Day, 15th September.
Trian Partners believe that Sysco Corporation is highly undervalued, which in turn provides them with an attractive opportunity of investment. They believe that the performance by SYSCO has not been up to the mark. New policies and initiatives will be taken such that the full potential is explored, leading to various benefits share holders and customers as well.
Although, it seems that the deal is beneficial for the company, but things might just be of a different perspective to other investors. Mr. Pletz is known for investing in companies and then moving high into the ranks displacing others, which might just not be taken normally by others. It will be interesting to see how the market will turn up tomorrow.