Scout Capital Management raises stake in Tim Hortons to 5.5% from about 1.5% as of end of March, says it will continue to engage in discussions with restaurant chain's senior management on various matters
June 17, 2013
(Thomson Reuters Corp.)
– Restaurant chain Tim Hortons Inc
Scout Capital Management, a U.S. hedge fund, disclosed on Monday that it has raised its stake in the Canadian chain. The fund now owns 5.5 percent of Tim Hortons' stock, up from about 1.5 percent, as of the end of March.
The fund said it has engaged and plans to continue to engage in discussions with Tim Hortons' senior management on matters relating to its capital structure, capital expenditures, timing and magnitude of share repurchases, management compensation and other matters.
A spokesman for Tim Hortons was not immediately reachable for comment on the matter.
The disclosure comes less than two months after Tim Hortons indicated that it plans to raise its debt levels and buy back shares in a bid to address some of the concerns expressed by Highfields Capital.
As of early May, Highfields owned a 4 percent stake in Tim Hortons, or about 6.1 million shares. Scout Capital said it now owns some 8.4 million shares in the company.
(Reporting by Euan Rocha; Editing by Bob Burgdorfer)
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