PepsiCo Rejects Peltz Call to Separate Beverage Division

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PepsiCo Inc., the world’s largest snack maker, said it won’t split its beverages from foods, rejecting a proposal from activist investor Nelson Peltz. The shares declined in New York trading.

PepsiCo, which owns Frito-Lay, Gatorade and Quaker Oats, said in a statementBloomberg Terminal today that keeping the divisions together is in the best interests of shareholders. Chief Executive Officer Indra Nooyi began a review of the businesses in 2012.