PepsiCo (NASDAQ:PEP) shares rose 4% after a Wall Street Journal report revealed that activist investor Elliott Investment Management has taken a roughly $4 billion stake in the snack and beverage giant.
The report indicated that Elliott aims to push for strategic changes at PepsiCo to lift its underperforming share price. The fund now ranks among the top five active investors in the company, excluding index funds.
PepsiCo has faced headwinds in recent quarters, struggling to regain soda market share lost to rivals, while its previously strong food division has also come under pressure.
Although Elliott has established a major position, the exact reforms or actions it plans to advocate for remain unspecified, the report said.
Elliott’s investment in PepsiCo represents one of its largest stakes ever, hinting at a potentially influential campaign to shape the company’s strategic direction.
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