Colgate-Palmolive (US:CL) shares rose on Tuesday after news Dan Loeb’s activist fund Third Point would unveil a “significant position” in a company that makes Colgate toothpaste and a myriad other consumer and home goods, and believe it should spin off its Hill’s pet food business.

CNBC reported on Tuesday that Loeb’s built a $1 billion position in the company and believes “there is meaningful hidden value in the company’s Hill’s Pet Nutrition business, which we believe would command a premium multiple if separated from Colgate’s consumer assets.”

Colgate did not respond to requests for comment from CNBC.

Loeb said he believed a stand-alone pet business could be worth $20 billion and trade at thirty times earnings. Colgate shares fell 13% through early Tuesday before the news. By comparison, the S&P 500 lost 21% in the same period.

According to historical results, Hill’s second quarter sales rose 5.3% to almost $909 million.

Colgate has been expanding the business and recently bought three dry food plans for $700 million.

The earlier reports said that Loeb argues that spinning off the unit would allow it to steal a jump on rivals, bringing new capacity to market ahead of competitors.

Several global companies expanded their pet food businesses in recent years as spending on animal companions and the popularity of premium products drive outsized growth.

Nestlè SA and General Mills recently said that pet owners keep spending despite economic cycles.

Loeb has launched activist campaigns against other companies, including Royal Dutch Shell Plc and Walt Disney Co.

Loeb also filed two 13Ds with the Securities & Exchange Commission this year at SentinelOne (US:S) and Cano Health (US:CANO).

This article originally appeared on Fintel

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