11 September 2015
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Nestlé SA (NESN VX)
As Crisis Abates, Nestle India to Reduce Reliance on Maggi
Nestle SA’s Indian unit, which is recovering from the biggest crisis in its history, plans to reduce its dependence on Maggi noodles and introduce more products from its global portfolio. An order by the Indian food safety regulator in June to recall the popular snack resulted in the company’s first ever quarterly loss in more than 15 years. By Adi Narayan (Bloomberg) Read more.
ABB Ltd. (ABBN VX)
ABB to Review Unit, Cut Costs Amid Interest From Activist
ABB Ltd., in which activist investor Cevian Capital AB has been building a stake, is pooling its power-distribution assets in a possible prelude to selling the unit as part of an accelerated overhaul. ABB will gather its utilities operations, spanning high-voltage power lines, substations and transformers into a new Power Grids division, the Zurich-based company said Wednesday. While supplying utility companies generates an estimated $12.6 billion in revenue, according to Bank of America, it’s viewed by analysts as a weaker part of ABB’s portfolio, under pricing pressure and competition from emerging market peers. By Alice Baghdjian (Bloomberg). Read more.