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Thursday, February 20, 2014

Nelson Peltz revives campaign to split up PepsiCo, (NYSE: PEP)

Activist Investor Nelson Peltz renewed his crusade to convince PepsiCo Inc to spin off its beverage business from its flourishing snacks division, less than a week after the company poured cold water on the idea.Shares of PepsiCo, whose snack brands include Lays, Cheetos and Doritos, rose as much as 2.3 percent on Thursday."Two leaner and more entrepreneurial companies" through the spin-off would boost sales and margins in the snacks business, while the drinks business would generate stable flow of cash that could be returned to shareholders, Peltz said in a 37-page letter to PepsiCo's board made public on Thursday.Some investors and experts sided with Peltz, whose investment fund has successfully advocated for break-ups and mergers at major food companies, even as PepsiCo executives defended their position.

PepsiCo, Inc. (PepsiCo) is a global food and beverage company. Shares of PEP traded higher by 1.18% or $0.91/share to $78.01. In the past year, the shares have traded as low as $74.53 and as high as $87.06. On average, 5136890 shares of PEP exchange hands on a given day and today's volume is recorded at 9435457.