PepsiCo Poised for 49% Gain Imitating Kraft Breakup: Real M&A

PepsiCo Inc. shareholders stand to reap a 49 percent gain if Chief Executive Officer Indra Nooyi splits the soft drinks business from snack foods, joining a wave of breakups from Kraft Foods Inc. to Tyco International Ltd.

PepsiCo, the world’s largest snack-foods maker and second-biggest soda producer, fell 9.7 percent to $60.39 in the past year through yesterday, wiping out almost $11 billion in market value. The shares trailed a 22 percent jump for Coca-Cola Co., the largest soft-drinks maker, and a 9.3 percent advance for Kraft, the No. 2 food company, according to data compiled by Bloomberg. Dividing Purchase, New York-based PepsiCo’s soda and Gatorade unit from Doritos and Lay’s chips may value the combined entity at $90 a share, Edward Jones & Co. said.