Corvex’s Meister Says Yum Should Break Off China Business

Yum! Brands Inc. should spin off its China business to increase value, according to Keith Meister, founder of activist hedge fund Corvex Management, which says it’s one of the restaurant group’s five largest shareholders.

“We think there is a clear, obvious way to create value and that’s to separate the business,” he said at the Sohn Investment Conference in New York on Monday, adding that such a move would create additional value of $16 per share. If the firm creates a China entity, it will be “levered to the endless growth to the Chinese middle class.”