Some members of PepsiCo want to take closer look at splitting up snack, beverage units, a move that CEO is against, according to source
November 16, 2011
– According to an article by the New York Post, a source said that some members of PepsiCo Inc. want to take a closer look at splitting up the snack and beverage units, a move that CEO Indra Nooyi is against, Reuters reported Nov. 16.
The article quoted another source as saying that Nooyi is close to announcing two major acquisitions — believed to be international — that could boost the company’s stock.
The rumors come after activist investor Nelson Peltz's Trian Fund took a 2.36 million-share stake in PepsiCo, where Nooyi is under pressure from many to split up the company or make other big changes.
Last October, PepsiCo management said it had considered breaking up the company but did not find that to be in the best interests of shareholders. Earlier this month, PepsiCo said its board and management would extend their review of ongoing business plans for 2012 and beyond, raising hopes of more drastic measures to reignite its sagging performance.
The primary source of this article is Reuters, London, England, on Nov. 16, 2011.