Third Point is a hedge fund known for its activist investing approach, which focuses on undervalued companies and advocating for changes to increase shareholders' value. From Third Point's perspective, it argued that despite having a strong portfolio position, Nestl's shares were underperforming compared to its peers in the United States and Europe. Third Point emphasized that this was viewed over various investment horizons (1, 3, 5, and 10 years) as shown in exhibit 3. Third Point called for the divestment of underperforming brands and for the company to focus on acquisitions in high-growth categories. Thus, Third Point believed that Nestl was monetizing the L'Oral stake, and the capital tied up in this investment could be better utilized elsewhere within Nestl's core business or returned to shareholders. Exhibit 2 showed the debt-to-equity ratio for Nestl increased from 21.5% to 29.1%, reflecting higher leverage. This increase raised concerns about financial stability if not matched by sufficient cash flows to service the debt. Hence, Third Point advocated for reshaping L'Oral portfolio, which implied that L'Oral felt some of Nestl's existing assets or brands might not align with its strategic objectives and that resources could be better allocated. Therefore, Third Point urged Nestl to establish more ambitious productivity targets, suggesting that the company could achieve better efficiency and cost savings, which is crucial in a competitive market. In response, Nestl argued that a long-term strategy has already been established and that short-term market flu