Will Pepsi (PEP) Separate into Two? All Signs Point to 'Yes'
If there's one thing you don't want to do to soda pop, it's give it a good shake. Carbonation is lost, and explosion risk upon opening is increased tenfold.
But don't tell that to PepsiCo (NYSE: PEP). According to the NY Post Wednesday, tensions are flying in Pepsi's board room as execs consider a potential split.
The move might not come as a surprise to many. Last week Pepsi said it would extend the review for it's 2012 and beyond business plan.
CEO Indra Nooyi has famously declared in the past that Pepsi is better as a whole, rather than separating the snack and beverage divisions.
According to the Post, an investment banker told DealReporter, should a split happen, Nooyi would run the International business, while internal candidates would see over beverage and snack operations in the U.S.
Adding fuel to the fire, several sources suggested Pepsi has made two acquisitions -- both international business -- which might add some life to its relatively flat stock performance recently. Another source said the claim is poppycock, and Pepsi is keeping it low-key after spending some $12 billion in acquisitions last year.
One final interesting point: activist investor Nelson Peltz disclosed a $150 million investment in Pepsi as of September 30th. Peltz was integral in persuading Kraft (NYSE: KFT) CEO Irene Rosenfeld to split into two separate businesses, the Post noted.
Pepsi has not issued a statement on recent reports, other than the extended Board meeting last week.
But don't tell that to PepsiCo (NYSE: PEP). According to the NY Post Wednesday, tensions are flying in Pepsi's board room as execs consider a potential split.
The move might not come as a surprise to many. Last week Pepsi said it would extend the review for it's 2012 and beyond business plan.
CEO Indra Nooyi has famously declared in the past that Pepsi is better as a whole, rather than separating the snack and beverage divisions.
According to the Post, an investment banker told DealReporter, should a split happen, Nooyi would run the International business, while internal candidates would see over beverage and snack operations in the U.S.
Adding fuel to the fire, several sources suggested Pepsi has made two acquisitions -- both international business -- which might add some life to its relatively flat stock performance recently. Another source said the claim is poppycock, and Pepsi is keeping it low-key after spending some $12 billion in acquisitions last year.
One final interesting point: activist investor Nelson Peltz disclosed a $150 million investment in Pepsi as of September 30th. Peltz was integral in persuading Kraft (NYSE: KFT) CEO Irene Rosenfeld to split into two separate businesses, the Post noted.
Pepsi has not issued a statement on recent reports, other than the extended Board meeting last week.
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