Tim Hortons Post Gains on Pressure From U.S. Hedge Fund
Highfields Capital Management LP, which which owns 1.6 percent of Tim Hortons, is pressuring the company to borrow $3.4 billion to buy back a third of its stock at $59 a share, Reuters reported. It’s also calling for the company to spin off its retail assets into a real estate investment trust, as Loblaw Cos., a Canadian grocer, is planning this year.
Joseph Mazzella, general counsel at Boston-based Highfields, didn’t immediately return a call seeking comment. Alexandra Cygal, a spokeswoman for Tim Hortons, didn’t return a message seeking comment.
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