Nelson Peltz reignites campaign to split up PepsiCo

Activist investor Nelson Peltz has warned Pepsi he is taking his plans to split the company’s beverage and snack units directly to its shareholders.

The founder of Trian Fund Management, which owns less than 1per cent of the US giant’s shares, said he was “highly disappointed” that PepsiCo had so far refused to consider his proposal.

In a 37-page letter to the firm, he added: “It is clear we have vastly different views on the best path forward for PepsiCo. It appears that PepsiCo views structural change as a sign of weakness, an admission of failure and an untenable break with past traditions. Trian views structural change as the best path forward to generate sustainable increases in shareholder value.”

PepsiCo’s largest shareholders include State Street. The firm, whose Pepsi drink is advertised by footballer Lionel Messi has insisted that keeping the units together is in the best interests of shareholders and claimed it will meet long-term profit goals.

The group’s executive vice president Jim Wilkinson said: “We have engaged constructively with Trian and invested a large amount of management time and significant financial resources analysing Trian’s proposals.”