The shares of PepsiCo ($PEP (-0,86%) ) rose sharply on Tuesday following a report in the Wall Street Journal. At times, they gained around four percent. The background to this is the entry of activist investor Elliott Investment Management, which has reportedly acquired shares worth around four billion US dollars in the drinks and snacks giant.
This position makes Elliott one of the five largest active investors in the group, excluding index funds. The newspaper also reported that the fund wants to push for changes at PepsiCo in order to revive the recent weak share price performance. It is not yet clear which specific measures could be the focus.
The group itself has been battling headwinds for several quarters: Pepsi has lost market share to rivals in the important soft drinks business, while the snacks and food segment, long celebrated as a growth driver, has also come under increasing pressure.
The investment is one of the largest single positions in Elliott's history. Observers see this as a signal that the fund could initiate a correspondingly ambitious campaign to realign PepsiCo.