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PepsiCo directors are said to be examining the possibility of a business split and are working on two major acquisitions, according to a fresh report.

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Citing a source "close to the situation", the New York Post yesterday (16 November) reported that some members of PepsiCo's board want to take a closer look at splitting up the snack and beverage units, a move that group CEO Indra Nooyi is reportedly against. The firm is also said to be close to announcing two large acquisitions. 

The report comes amid growing speculation about boardroom unrest at PepsiCo.

In August, the company said it has no plans to split its snacks and beverage divisions, despite analyst suggestions that it may follow Kraft in its decision to break up its business.

However, PepsiCo's public denial has not quelled the speculation. Research by Sanford Bernstein analysts has revealed investor concerns about PepsiCo's direction. Last week, PepsiCo extended a strategic business review, prompting suspicion that the review has taken on greater significance in light of investor concern.

This week, meanwhile, Nelson Peltz's Trian Fund Management announced it had bought US$146m-worth of PepsiCo shares - representing 0.15% of PepsiCo's outstanding shares. Peltz, who also holds shares in Kraft, is known for investing in a company and then agitating for change.

A PepsiCo spokesperson was not immediately available for comment on the latest New York Post report.

For an overview of PepsiCo's recent headlines, click here.


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