US-based investment management firm Trian Fund Management's founding partner Nelson Peltz has acquired stakes in PepsiCo and Mondelēz International.
Peltz has acquired stakes valued at about $1.4bn each in PepsiCo and Mondelez International, reported The Wall Street Journal citing sources familiar with the matter.
It is believed that the Trian Fund Management and other investors could push PepsiCo to split its snack and drink businesses or merge with Mondelez International or both.The resulting entity is expected to have more than $100bn in revenues and operating earnings of $20bn.
As of 31 December 2012, Trian owned 3.9 million shares worth $269.1m of PepsiCo and 19.4 million shares worth $494.2m of Mondelez.
PepsiCo stated that recently the company held meeting with Trian Fund Management to discuss their ideas and initiatives as part of PepsiCo's ongoing evaluation of opportunities to drive long term growth and shareholder value.
PepsiCo is evaluating various restructuring efforts and potential structural changes, including a spin-off, at its North American beverage business.
Headquartered in New York, US, PepsiCo's business units include Frito-Lay North America, Pepsi-Cola, Quaker Foods, Gatorade and Tropicana.
Mondelez International was the snacks division of Kraft Foods but was spun off in 2012. Mondelez International owns brands including Oreo, Chips Ahoy!, TUC, Belvita, Club Social, Barni, Milka, Lacta, Toblerone, Cadbury Dairy Milk, Trident, Chiclets, Halls, Stride, and Cadbury Dairy Milk Eclairs.
