Pepsico gets large deals

The Pak Banker - - COMPANIES/BOSS -

PepsiCo (PEP) Inc. said it doesn’t need large-scale ac­qui­si­tions af­ter a news­pa­per re­ported bil­lion­aire in­vestor Nel­son Peltz has built stakes in PepsiCo and food maker Mon­delez In­ter­na­tional Inc. (MDLZ) and may ag­i­tate for a merger.

“We are mak­ing strong progress in our strat­egy to de­liver long-term growth and cre­ate share­holder value, and we do not see the need for any large scale M&A,” Jeff Dah­ncke, a PepsiCo spokesman, said in an e-mail. He de­clined to com­ment specif­i­cally about Peltz. Spon­sored Links The size of the stakes taken by Peltz’s Trian Fund Man­age­ment LP is un­clear, the Daily Tele­graph re­ported to­day, cit­ing peo­ple it didn’t iden­tify. One of the peo­ple told the news­pa­per that Peltz has spent at least $2 bil­lion on his lat­est foray into the food in­dus­try. Peltz could push for a merger of the two com­pa­nies, the Tele­graph said, cit­ing uniden­ti­fied peo­ple in Lon­don.

PepsiCo rose 3.3 per­cent to $78.64 at the close in New York, while Mon­delez gained 4.1 per­cent to $29.73, for the big­gest ad­vance since Jan. 2

Jo Bradley, a U.K.-based spokes­woman for Mon­delez, said the Deer­field, Illi­nois-based com­pany doesn’t com­ment on “mar­ket ru­mors or spec­u­la­tion.” A rep­re­sen­ta­tive at New York­based Trian didn’t im­me­di­ately re­turn a voice mail re­quest­ing com­ment.

Peltz, 70, is an ac­tivist in­vestor who takes stakes in com­pa­nies, par­tic­u­larly those in the food and restau­rant sec­tors, and then fre­quently pushes for changes de­signed to boost their share prices.

The bil­lion­aire’s $300 mil­lion pur­chase of iced-tea maker Snap­ple in 1997 paid off when he sold it for $1.45 bil­lion three years later. He also bought a stake in Bri­tish con­fec­tioner Cad­bury Sch­weppes Plc and pushed for a spinoff of its soda unit, prior to its 2010 takeover by Kraft Foods Inc. He also in­vested in ketchup maker H.J. Heinz Co., which War­ren Buf­fett’s Berk­shire Hath­away and 3G Cap­i­tal agreed to ac­quire this year. In Novem­ber 2011, Trian re­ported it had pur­chased 2.36 mil­lion PepsiCo shares as of Sept. 30 of that year. It was the first time Trian re­ported in­vest­ing in PepsiCo. Months later, in Fe­bru­ary 2012, Trian re­ported sell­ing all its shares.

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