Peltz could begin publicly prodding Pepsi

The activist investor would like to see the company acquire Oreo maker Mondelez.

By MSN Money Partner Jul 17, 2013 2:15PM

Fox BusinessCans of PepsiCo. Inc. Pepsi and Diet Pepsi soda in San Francisco, Calif., on February 13, 2013 (© David Paul Morris/Bloomberg via Getty Images)By Matt Egan

 

Billionaire corporate raider Nelson Peltz could soon go public with his arguments for improving PepsiCo's (PEP) shareholder returns, including by considering a mega-deal to acquire Oreo maker Mondelez International (MDLZ).

 

That's because a previously agreed upon timeframe between PepsiCo and Peltz's Trian Fund Management to privately evaluate the activist investor's proposals may soon be expiring, Reuters reported.

 

Peltz took a stake in both PepsiCo and Cadbury parent Mondelez earlier this year, fueling reports indicating the corporate raider was plotting a huge merger of the food and beverage giants.

 

According to Reuters, Peltz and PepsiCo agreed on a timeframe to consider the investor's suggestions, including acquiring Mondelez, strategic options for the company's North American beverage operations and enhanced cost-cutting moves.

 

Talks are ongoing and have been constructive, but the original deadline has passed, prompting speculation Peltz could make his case in a more public fashion, the wire service reported.

 

As of the end of the first quarter, Peltz owned a combined $2.19 billion worth of shares in PepsiCo and Mondelez.

 

In an emailed statement, Mondelez said it has "created significant value through our transformation. We're focused on leveraging our advantaged category mix, leading market positions and strong geographic footprint to deliver top-tier financial performance and enhance value for all our shareholders."

 

Mondelez broke off from North American grocery company Kraft (KRFT) last year.

 

Peltz's Trian Fund Management didn't respond to a request for comment nor did Pepsi.

 

While PepsiCo declined to comment on rumors or speculation in March, the company reiterated that it has made progress on its long-term growth strategy and does not "see the need for any large scale M&A."

 

Even though Peltz may be pushing for a deal, neither company's boards would seem to be pressured by their respective stock prices.

 

PepsiCo ticked up 0.26% to $84.24 on Wednesday, leaving it up 23% so far this year.

For its part, Mondelez rose 0.82% to $30.11, extending its 2013 rally to 18%.

 

More from Fox Business

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

123
123 rated 1
266
266 rated 2
485
485 rated 3
660
660 rated 4
586
586 rated 5
652
652 rated 6
640
640 rated 7
504
504 rated 8
289
289 rated 9
159
159 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
TAT&T Inc9
VZVERIZON COMMUNICATIONS8
CTLCENTURYLINK Inc8
EXCEXELON CORPORATION8
AAPLAPPLE Inc10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.