PepsiCo Faces Pressure to Break Up Business

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July 24 (Bloomberg) -- PepsiCo, the food and beverage company that investor Nelson Peltz is trying to split up, posted second-quarter profit that topped analysts’ estimates. Adam Johnson reports on Bloomberg Television's "Lunch Money." (Source: Bloomberg)

We want to go from mcdonnell to pepsico.

They did well in the last quarter beating analysts' estimates, but not everyone is as happy.

Someone pepsico to split their food and beverage units in order to increase value.

Here is what the cfo had to say.

We think the portfolio is working right now.

Combine with the relentless focus we have and productivity makes us work.

The risk of man in the billion dollar transaction and then trying to drive synergies out of that, taking on integration, we do not think it makes sense for shareholders.

You are dead on, it is hard to accept large size transactions.

What is the number-one push back you have over the risk of $80 billion transaction?

It really falls into two categories.

One, is the integration risk of putting together those two businesses into operating in almost 200 companies, combined with the fact that for the premium we would have to pay, i do not doubt that shareholders would do well.

I have doubts about shareholders for pepsico.

For those looking at the transaction, what is their percentage ownership of pepsico?

Generally it is the other holders.

This text has been automatically generated. It may not be 100% accurate.


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