) reached a 52-week high of $76.33 on Friday, Mar 22, 2013, amid
rumors of its possible merger with food giant,
Mondelez International, Inc.
). This high beat PepsiCo's previous 52-week high of $76.33,
reached on Monday, Feb 25, 2013 after announcing solid
The closing price of the cola giant on Mar 22, 2013, was
$78.64, representing a solid 1-year return of about 23.2% and
year-to-date return of about 14.3%. Average volume of shares
traded over the last three months stands at approximately
The Telegraph of London
reported last Friday that activist investor Nelson Peltz is fast
building stakes in PepsiCo and Mondelez, possibly in pursuit of a
large $170 billion merger of the consumer giants.
The exact amount of Peltz's investment is undisclosed. As per
the news daily, citing some unnamed source, it speculates that
Peltz could have already spent close to $2 billion to buy major
stakes in the food and beverage giants through his investment
vehicle, Trian Fund Management.
The news daily conjectured that Peltz may push PepsiCo to
either take over Mondelez or split up into 2 separate companies.
Shares on PepsiCo and Mondelez jumped on the merger rumors.
Mondelez emerged from such a split last year when Kraft Foods,
Inc was demerged into two separate companies, Mondelez and
Kraft Foods Group
). Kraft Foods Group consists of the North American grocery
business of the old Kraft Foods while Mondelez handles the
latter's snack business, which includes brands like Cadbury and
Toblerone chocolates and Oreo biscuits.
PepsiCo has, however, denied rumors and issued a statement
stating that it is not interested in large acquisitions.
This speculation of a possible merger comes on the heels of a
shocking merger announcement last month, that of ketchup maker,
H.J. Heinz Company
) with Warren Buffet's company, Berkshire Hathaway, Inc. and a
private Brazilian investment firm, 3G Capital.
HEINZ (HJ) CO (HNZ): Free Stock Analysis
KRAFT FOODS GRP (KRFT): Free Stock Analysis
MONDELEZ INTL (MDLZ): Free Stock Analysis
PEPSICO INC (PEP): Free Stock Analysis Report
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