Fortune favours the brave

By: Chris Brook-Carter - 13 October 2010 12:56

Pershing Square Capital Management LP has acquired an 11% stake in Fortune Brands, US reports have said.

The hedge-fund firm is led by activist investor William Ackman, who has a reputation for buying stock in companies he deems undervalued and lobbying for changes he thinks will boost shareholder value.

It is certainly a move to keep an eye on, and may spell trouble for the US-owner of the Beam Global Spirits & Wine business.

Ackman led an unsuccessful effort last year to place as many as five board members, including himself, on the US retailer Target's board and also has a history of stirring things up at the restaurant chain Wendy's.

Beam's investor relations team will have their work cut out.