PepsiCo Is Close To Striking A Settlement With Activist Giant Elliott After Its $4B Push For Change

• The newspaper reported in September that Elliott Investment Management is planning to push PepsiCo to make changes in an attempt to boost its stock price after building a nearly $4 billion stake in the beverages and snacks company.
• Elliott was pushing the company to refranchise its bottling business and make other changes including divesting its underperforming assets in the food and beverage business. 
• The company’s CEO Ramon Laguarta said in October that the company is eyeing the introduction of a “strong pipeline of innovation to accelerate portfolio transformation.”

PepsiCo (PEP) is reportedly nearing a settlement with activist investor Elliott Investment Management who sought changes at the company in September to reverse a slump in share price.

The Wall Street Journal reported on Thursday, citing people familiar with the matter that an announcement could come soon. Details of the settlement could not be learnt, it added.

Elliott Pushes For Changes

The newspaper reported in September that Elliott Investment Management is planning to push PepsiCo to make changes in an attempt to boost its stock price after building a nearly $4 billion stake in the beverages and snacks company. Elliottt was pushing the company to refranchise its bottling business and make other changes including divesting its underperforming assets in the food and beverage business.

PEP stock traded 1% lower at the time of writing and has dropped nearly 3% this year. The beverage and snacks giant has been grappling with slowing sales for its traditional drinks and snacks as customers become increasingly cautious about their lifestyle and food preferences, prompting it to acquire the probiotic soda brand Poppi.

Company Commits To Portfolio Transformation

The company’s CEO Ramon Laguarta said in October that the company is eyeing the introduction of a “strong pipeline of innovation to accelerate portfolio transformation” and boost growth while also providing “good value to consumers.”

In October, PepsiCo also named Walmart (WMT) executive Steve Schmitt as its new Chief Financial Officer, succeeding Jamie Caulfield.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around PEP stayed within the ‘bullish’ territory over the past 24 hours, while message volume stayed at ‘high’ levels.

PEP stock has dropped 8% over the past 12 months. 

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