(Reuters) – International Flavors & Fragrances Inc said on Monday it has offered Sachem Head Capital Management’s Scott Ferguson a seat on the chemical company’s board, potentially staving off a broader activist push.
The hedge fund amassed a roughly $1 billion stake in IFF and had nominated four directors to its board, Reuters reported in February, after IFF completed a $26.2 billion merger with DuPont’s nutrition unit.
As part of the deal, IFF said Sachem Head had agreed, at least temporarily, not to take on an activist role in terms of influencing shareholders. The hedge fund also agreed not to acquire more than 4.99% of the company’s outstanding shares.
Ferguson, managing partner at Sachem Head, will have the option to join IFF’s board between Sept. 10 and Dec. 31, the company said.
(Reporting by Uday Sampath in Bengaluru; Editing by Shailesh Kuber)