Yum's Detente With Activist Investor Signals China Shake-Up
- Corvex's Meister has called for Yum to spin off its China unit
- Company has been reviewing options with advisers for a year
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Yum! Brands Inc. is adding one of its most vocal investors to the board, a move seen as a prelude to a possible spinoff of its China division.
The fast-food giant, which is finishing a review of its strategic options, announced that Corvex Management founder Keith Meister will become a director on Friday. Meister, a protege of billionaire Carl Icahn, has called on Yum to break off its Chinese operations, saying that the Asian market could be better served with a more focused business. Meister has said that the move could generate an additional $16 a share in value for Yum.