US: PepsiCo speaks out over fresh Peltz bid to split group
PepsiCo has hit out at Peltz's fresh bid to split the group
PepsiCo has issued a rebuke to a fresh effort by Nelson Peltz’s Trian Fund Management to split up the company, branding the interference a “costly distraction”.
Trian sent a 37-page letter to PepsiCo’s board of directors on Wednesday (19 February) outlining why it still believes the US group should spin off its beverage business from its snacks unit, the Wall Street Journal reported. Peltz’s investment group also said it plans to hold meetings with PepsiCo shareholders to generate support to split the company, it was reported.
However, in a statement published on its website, PepsiCo said its management and directors have “spoken clearly on the issue”, flagging the strategy outlined last week during its full-year results announcement. The group said it had decided to retain its North American beverage business within its current structure.
“We engaged constructively with Trian and invested a large amount of management time and significant financial resources analysing Trian’s proposals,” the statement added.
“Management and the board have spoken clearly, and our focus is on delivering results for our shareholders, not new, costly distractions that will harm shareholder interests.”
Peltz had also previously suggested PepsiCo should merge with Mondelez International, in the wake of the group being split. But last month Trian said Peltz was dropping this plan as he had agreed to become a director at Mondelez.
Sectors: Soft drinks
- The End of the Road for International Beer Brands?
- Comment - Another One Bites Bacardi's Dust
- Pernod Ricard's FY Performance by Region, Brand
- US craft vodka puts squeeze on Pernod's Absolut
- just The Preview - Pernod Ricard's Q4 & FY
- Mast-Jägermeister targets UK off-trade boost
- Pernod bemoans tough FY as sales, profits drop
- ASA bans Jägermeister TV ad
- Bacardi announces CFO switch
- SABMiller exec to become CFO at Beam Suntory