Pershing Square invests in Nestlé

Dealbook posts Pershing Square's latest quarterly comment in which they disclose their new investment in Nestlé. The stock seems to be the darling of famous investors. After Warren Buffett William A. Ackman has also become an investor. Their rationale can be read here. In Short Nestle, the world's largest food and beverage company has a great brand portfolio, it is gaining share in developped markets and growing in the high single to low teen in emerging markets. Pershing sees 1bn of annual cost cutting potential for the next few years and a 28bn cash bonanza if Nestle puts its Alcan shares to Novartis.