Companies in Europe should shore up their corporate governance and review board behaviour to avoid ending up on the "shopping lists" being drawn up by international activist investors, hedge fund managers and lawyers have warned.

One of Europe's largest companies, Swiss-headquartered consumer group Nestlé, has found itself in the crosshairs of a major US investor. Third Point, a $17bn hedge fund known for taking activist positions in companies including Yahoo and Dow Chemical, has bought a 1.25% stake in the company.