Nestle SA ( NSRGY) could be the next European firm in the cross-hairs of a U.S. activist investor after Dan Loeb's Third Point hedge fund pressed the world's biggest food company over the weekend to shed assets and increase share buybacks.

Third Point said Sunday it had built a 1% stake in Nestle, which would put the group among the ten largest shareholders of the Vevy, Switzerland-based group and wants management to pursue a series of options it argues would unlock shareholder value, including the sale of its 23% stake in luxury goods maker L'Oreal SA (LRLCY) . The fund said it was being advised by Jan Bennink, the former CEO of Roya Numico.

This article was written by a staff member of TheStreet.