Dan Loeb's Third Point builds stake in Colgate, sees value in pet food business in potential spinoff

Dan Loeb's Third Point has built a sizeable involvement successful user elephantine Colgate-Palmolive, according to CNBC's David Faber.

Loeb sees hidden worth successful Colgate's subsidiary Hill's Pet Nutrition, a favored nutrient company, if it were spun off.

The capitalist believes arsenic a stand-alone business, Hill's could present adjacent faster maturation and amended margins, and could execute a valuation adjacent to $20 cardinal connected its 2023 numbers, Loeb volition accidental successful a forthcoming capitalist letter, according to sources.

Colgate has been investing down its favored nutrient business, its fastest increasing unit. Hill's has ever pitched itself arsenic backed by "science," which from a marque position is seen arsenic connected trend.

The activistic and hedge money manager added that consolidation successful the user wellness assemblage constituent to much opportunities for Colgate. Loeb said Colgate could go portion of the existent M&A "minuet" successful user health. 

Shares of Colgate jumped astir 3% connected Tuesday. The banal is inactive down astir 15% this year.