LONDON — In revealing his investment position in Nestlé on Sunday, the hedge fund manager Daniel S. Loeb urged the company to consider slimming down, as well as buying back its stock.

On Tuesday, Nestlé said it was indeed prepared to spend billions of dollars on buybacks — but the company also suggested that it might pursue a number of acquisitions in addition to shedding businesses.

Nestlé said it could buy back almost $21 billion of its shares over the next three years to create value for its shareholders. The company added that it would consider making acquisitions in fast-growing parts of its business portfolio, including coffee, pet care, bottled water and consumer health care.

The plan suggests significant change at Nestlé, the Swiss food giant whose products include Kit Kat bars and Stouffer’s frozen pizzas, at a time when its once-enviable growth rates have declined as consumer tastes change.