PepsiCo Inc. doesn’t plan to heed a proposal by Trian Fund Management LP’s Nelson Peltz, who is urging the soft-drink maker to purchase Mondelez International Inc. (MDLZ), according to a person with knowledge of the matter.
PepsiCo also is unlikely to split its global beverage business from its global snacks business, said the person, who asked not to be identified because the company’s dealmaking is handled privately.
Buying Mondelez would be risky for PepsiCo shareholders because of Mondelez’s underperformance and reliance on slow growth Western European markets, this person said. PepsiCo, based in Purchase, New York, earlier had said, “we have a strong growth strategy and structure in place, and our results to date and returns to our shareholders prove that we are a high performing company and our strategy is working. We continue to make significant progress against our strategic priorities and are focused on delivering results and driving long-term shareholder value.”
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