RI Pernod Ricard

   By Cristina Roca 
 

Pernod Ricard SA (RI.FR) confirmed Wednesday that it has been in talks with Elliott Management Corp. and defended its existing strategy and board.

The French drinks maker issued a statement Wednesday after Elliott announced earlier in the day that it has taken a position of about 2.5% in Pernod Ricard, saying it sees significant room for improvement at the operational-and-governance level.

Pernod Ricard said it welcomes constructive input from shareholders, and responded to Elliott's criticism by highlighting the results of the strategic model it has already implemented and defending its choice of board members.

"We are a group with strong family values committed to long-term value creation," said Pernod Ricard Chief Executive Officer Alexandre Ricard.

Pernod Ricard said the company "has demonstrated a commitment to board refreshment" following Elliott's call for improvements to its corporate governance. The U.S. activist fund finds Pernod Ricard's board, which is largely influenced by the Ricard family, too French and insular.

Responding to Elliott's call for a "more ambitious operational-improvement plan" to help Pernod catch up to peers in profitability, Pernod Ricard said it has over the past three years executed a strategic model that has yielded results. The premium drinks maker also noted a new strategic plan aimed at accelerating growth and transforming the company.

Elliott said early Wednesday that it sees Pernod Ricard as an attractive investment, but that the company has been lagging behind peers on various metrics for a while, and is underdelivering value to shareholders.

Write to Cristina Roca at cristina.roca@dowjones.com; @_cristinaroca

(END) Dow Jones Newswires

December 12, 2018 10:25 ET (15:25 GMT)

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