December 12, 2018 / 1:32 PM / 10 months ago

Elliott asked Pernod Ricard for 500 million euros cost cuts: source

A logo is seen on a bottle of the Ricard aniseed-flavoured beverage displayed during French drinks maker Pernod Ricard news conference to announce the company annual results in Paris, France, August 29, 2018. REUTERS/Christian Hartmann

PARIS (Reuters) - Activist fund Elliott Management sent a letter to the board of Pernod Ricard (PERP.PA) asking for cost cuts of some 500 million euros ($567.40 million) to help boost its operating performance, a source close to the matter told Reuters.

Elliott also suggested alternative scenarios such as a merger with a large rival, added the same source.

Elliott said earlier in the day that it has taken a stake of over 2.5 percent in the company and met its chief executive to discuss ways to improve its performance.

($1 = 0.8812 euros)

Reporting by Dominique Vidalon and Pascale Denis; Editing by Sudip Kar-Gupta/Richard Lough

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