PepsiCo Reaches 52-Week High - Analyst Blog
March 25 2013 - 6:00AM
Zacks
Shares of PepsiCo, Inc. (PEP) 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. (MDLZ). This high beat PepsiCo’s previous 52-week
high of $76.33, reached on Monday, Feb 25, 2013 after announcing
solid fourth-quarter results.
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 5158K.
Merger Speculation
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 (KRFT). 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 (HNZ) with Warren Buffet’s company, Berkshire
Hathaway, Inc. and a private Brazilian investment firm, 3G
Capital.
HEINZ (HJ) CO (HNZ): Free Stock Analysis Report
KRAFT FOODS GRP (KRFT): Free Stock Analysis Report
MONDELEZ INTL (MDLZ): Free Stock Analysis Report
PEPSICO INC (PEP): Free Stock Analysis Report
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