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Elliott Management plans activist campaign at PepsiCo with $4 billion stake, WSJ reports
Elliott Management's $4 billion investment targets operational improvements as PepsiCo's stock lags broader market by 2%, prompting strategic changes to boost performance.
- On Tuesday the Wall Street Journal reported Elliott Investment Management, founded by Paul Singer, holds about a $4 billion stake in PepsiCo, making it a top five active investor excluding index funds, and PepsiCo shares climbed 4.5% in premarket trading.
- Facing soft demand, PepsiCo's stock is down about 2% this year, lagging the market, while it cut costs and closed two manufacturing plants of its North American food business during the quarter.
- With a track record of shareholder campaigns, Elliott Investment Management has driven changes at Phillips 66 and Southwest Airlines, sometimes yielding strong returns for investors.
- The Journal noted Elliott Investment Management's objectives remain unclear, while PepsiCo is improving transportation and logistics efficiency and reassessing marketing dollars to boost returns.
- Pepsi's earnings beat comes as the company outlines strategy shifts; the Wall Street Journal's report on Elliott's stake coincides with these changes and projections of North American demand rebounding.
48 Articles
48 Articles
Elliott is taking on Pepsi, but today's activist campaigns are more playbook than knife fight
Paul E. Singer, Founder and President, Elliott Management.CNBC / Getty ContributorBillionaire Paul Singer's Elliott Management took a $4 billion stake in conglomerate Pepsi.The feared activist investor believes the company's stock could rise by more than 50%, Elliott wrote in a letter to Pepsi.Pepsi's C-suite does not need to worry, though — these big-name campaigns rarely turn into a big fight anymore.It's never a good day when an activist inve…
Activist firm takes $4B stake in PepsiCo, pushes for major changes at parent of Plano's Frito-Lay
Any changes at PepsiCo and Frito-Lay could have ramifications for North Texas, where the company employs thousands. PepsiCo is being targeted by the same activist investment firm that pushed Southwest Airlines to reshape its board.
Elliott’s $4B bet on Pepsi adds to corporate drama
The NewsThe grocery aisles are getting crowded. Activist Elliott Management’s $4 billion stake in PepsiCo is the latest bit of corporate drama and potential dealmaking in the food sector — at a time when tariffs, shifting tastes, and the uptake of GLP-1 drugs make the outlook for how and what consumers eat murkier than ever.Pepsi, long No. 2 to industry leader Coca-Cola, slipped behind Dr Pepper last year in beverage sales, which Elliott blames …
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