This is exactly the opposite direction to the one they should be going. This company's business is catering and they should stick to that and get it right, not as we have seen. Spending shareholder money on other areas is mixing strategy and this cash should be returned to their rightful owners, the shareholders.
If Sodexho needs ownership in order to keep and get catering business, others are doing are better job. This move shows that the Sodexho management has no ideas about fixing and growing its business.
The board should be looking to make management changes.
Onésimo Alvarez-Moro
See article:
Sodexho Alliance, the French catering multinational, admitted this week that it was considering investing in topless cabaret. About time too: there has not been nearly enough eye-catching corporate diversification in recent years.
Shareholder demands for streamlined businesses focused on just one or two activities have deadened the landscape of quoted companies, forcing conglomerates to shed quirky units in order to concentrate on their most obvious calling.
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