Activist Investor Elliott Targets PepsiCo with $4 Billion Stake, Demands Overhaul

A major activist investor has taken a significant position in PepsiCo, setting the stage for a potential strategic shakeup. Elliott Investment Management has built a substantial $4 billion stake in the food and beverage conglomerate and is pushing for immediate changes, projecting that its proposed turnaround plan could unlock shareholder gains exceeding 50%.

The investment firm has delivered a stark assessment to PepsiCo’s board, identifying five critical areas requiring urgent attention. According to Elliott, a series of strategic missteps over recent years has resulted in “weak financial results, significant stock underperformance, and a severely flawed valuation.” The firm points to the stock’s approximate 15% decline over the past year, a period during which the broader market posted gains. This underperformance is highlighted by the stronger showing of rival Coca-Cola... Read more...