PepsiCo Nears Deal With Activist Investor Elliott
Talks Focus on Brand Strategy and Bottling Operations Review
Key Takeaways:
- PepsiCo is close to reaching a settlement with Elliott Investment Management after the investor took a $4 billion stake and pressed for strategic changes.
- Elliott has urged PepsiCo to streamline its snack portfolio and consider re-franchising its beverage bottling network to mirror Coca-Cola’s model.
- A deal could be announced soon, though both parties declined to comment and prior talks were described as constructive.
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PepsiCo Inc. is nearing a settlement agreement with activist investor Elliott Investment Management, the Wall Street Journal reported Dec. 4, without providing details.
An agreement could be announced soon, according to the Journal.
PepsiCo hasworked to overhaul its portfolioof brands since Elliott announceda roughly $4 billion stakein early September and called on the company to review and streamline its snack offerings. Elliott has urged PepsiCo to look into re-franchising the beverage unit’s “operationally intensive” bottling network, as Coca-Cola Co. has done, so it can focus on its core strengths.
The company ranks No. 2 on the Transport Topics Top 100 list of the largest private carriers in North America, 11,486 tractors and 29,351 trailers.
PepsiCo CEO Ramon Laguarta said in October that the company had met a couple of times with Elliott andhad constructive discussions, but that there were still “a few areas where we need to probably educate each other a bit more.”
PepsiCo and Elliott declined to comment.
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