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Nelson Peltz's Trian Fund Management has reportedly spent at least $2B in buying stakes in Pepsi...

Nelson Peltz's Trian Fund Management has reportedly spent at least $2B in buying stakes in Pepsi (PEP) and Mondelez (MDLZ), prompting fevered speculation as to what the activist investor is up to. One theory is that Peltz will push a merger of the companies, another is that he'll press Pepsi to break up, or that he'll just sit there and do nothing.
Comments (4)
  • JailDoc
    , contributor
    Comments (47) | Send Message
     
    This could be very good news for PEP investors if they spin off
    the food industry portion.
    22 Mar 2013, 08:04 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5363) | Send Message
     
    (PEP) is a $100+ billion company. $2 billion is peanuts. Takes a much bigger stake to force a break up. Ichan usually accumulates at least 10% of the outstanding shares.
    22 Mar 2013, 11:13 AM Reply Like
  • Energysystems
    , contributor
    Comments (944) | Send Message
     
    Except, the $PEP "breakup" has been discussed ad nauseam. Up to and including questions asked/answered by more than one Pepsi CEO. I wouldn't be suprised by an eventual spinoff of the snack division, but as a shareholder I like the diversity of the business. I think it'd be a great move by $PEP to acquire $MDLZ(also a shareholder of that), because it'd greatly diversify the snack division as well. I agree though, this "activist" talk is a popular one these days; and unless you go in very strongly, you're not going to be taken seriously.
    22 Mar 2013, 11:53 AM Reply Like
  • glodzi
    , contributor
    Comments (4) | Send Message
     
    Owned Wendy's when Peltz took it over. Screwed the shareholders over. Stock dropped like a stone after he got control. I sold it at a loss after two years of watching the stock sit a $6. Hopeful he will keep his paws off Pepsico. This is a great company and a dividend aristocrat. Petlz hates dividends except where he collects them. If he pushes for a merger with Mondelez it would only be to enrich himself at the expence of shareholders
    24 Mar 2013, 03:22 PM Reply Like
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