PepsiCo has once again rejected calls from major investor Nelson Peltz to separate its snack unit, which includes brands such as Tostitos, Lay's and Fritos, from its global drinks unit.
Ian Cook, presiding director of the company's board, has said that the board and management were "comfortable" and in "complete alignment" in rejecting the split proposal.
Cook said PepsiCo had analysed the company's current structure and its beverage business and concluded that it was better off as a combined food and beverage company.
"In short, the board and management have concluded that the financial engineering you (Peltz) propose erodes value for shareholders rather than creates value."
Peltz, which own about $1.2 billion of Pepsico stock, sent a 37 page letter to the PepsiCo board suggesting they establish "two leaner and more entrepreneurial companies".
© 2014 - European Supermarket Magazine by Enda Dowling
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