Activist investor Elliott nears settlement with PepsiCo, WSJ reports

Dec 4 (Reuters) - Activist investor Elliott Management is close to striking a settlement agreement with PepsiCo, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

Details of the settlement could not be learned, according to the report.

Elliott had taken a roughly $4 billion stake in the beverage and snacks giant in September, and urged PepsiCo to boost its share price, revive its soda business and become more competitive.

PepsiCo did not respond to a Reuters request for comment, while Elliott Management declined to comment.

In October, PepsiCo CEO Ramon Laguarta said the company's interactions with Elliott had been collaborative and that he agreed with the activist investor about the stock's undervaluation.

Laguarta added at the time that many of Elliott's ideas were included in PepsiCo's current strategy to grow its business, but did not provide a clear answer to the activist investor's idea to spin off the company's large North American bottling network to help grow margins.

The company, which named a new CFO and posted a quarterly results beat in October, had said it was working to cut costs in the snacks category in the U.S., with measures that included closing two plants and cutting nearly 15% of its product lines.

PepsiCo is also betting on more consumers preferring healthier options, and plans to relaunch energy drink Gatorade following a similar rebranding of Lay's and Tostitos. It will also introduce a Propel drink with electrolytes, fiber and protein, following its acquisition of prebiotic soda brand Poppi.

(Reporting by Chandni Shah and Neil J Kanatt in Bengaluru; Editing by Alan Barona)

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