Breaking News from CNBC's Andrew Ross Sorkin: Nelson Peltz's Trian Takes Stakes in PepsiCo and Mondelez
When: Today, Friday, April 19th at 6:52AM ET
Where: CNBC's "Squawk Box"
Following is the unofficial transcript of breaking news from CNBC's Andrew Ross Sorkin today on "Squawk Box."
All references must be sourced to CNBC.
SORKIN: WE ARE GOING TO CONTINUE OF COURSE TO FOLLOW THIS SITUATION WE ARE JUST GOING TO BREAK IN WITH SOME QUICK BUSINESS NEWS TO TELL YOU ABOUT THAT MIGHT BE MOVING SOME STOCKS THIS MORNING. THE NEWS BEING THAT NELSON PELTZ'S TRIAN HAS TAKEN RATHER LARGE STAKES, BIG STAKES, IN BOTH PEPSICO AND IN MONDELEZ. THEY NOW HAVE $2.7 BILLION THAT THEY'VE PUT AGAINST BOTH OF THESE COMPANIES A STATEMENT, A 13-F FILING SHOWING THAT THEY BEGAN MAKING THOSE INVESTMENTS LATE LAST YEAR. THOSE STATEMENTS SHOW THAT THEY HAVE $270 MILLION IN PEPSI, $500 MILLION IN MONDELEZ. MY SOURCES ARE NOW TELLING ME THAT INVESTMENT HAS NOW GROWN MATERIALLY $1.4 BILLION NOW IN PEPSI, $1.3 BILLION IN MONDELEZ. PEPSICO OUT WITH A STATEMENT THIS MORNING SAYING THAT "IN RECENT WEEKS, WE HAVE HAD MEETINGS WITH TRIAN TO DISCUSS AND CONSIDER THEIR IDEAS AND INITIATIVES AS PART OF OUR ONGOING EVALUATION OF ALL OPPORTUNITIES TO DRIVE LONG TERM GROWTH AND SHAREHOLDER VALUE. TRIAN IS A RESPECTED INVESTOR, AND WE LOOK FORWARD TO CONTINUING CONSTRUCTIVE DISCUSSIONS WITH THEM." WE HAD TALKED TO THE CFO OF PEPSI YESTERDAY; I HAD RAISED SOME OF THESE ISSUES ABOUT SPECULATION ABOUT NELSON PELTZ HAVING AN INVESTMENT IN THE COMPANY. ALSO ABOUT WHETHER PERHAPS PEPSI, AND MAYBE WE DON'T IF NELSON PELTZ IS PUSHING TO DO THIS, TO TAKE THE FRITO LAY DIVISION AND TO SPIN IT OFF AND MERGE IT WITH MONDELEZ, THAT HAS BEEN THE SPECULATION. WE WILL TRY TO FIND OUT MORE ABOUT WHERE THIS IS ALL GOING BUT SOURCES ARE TELLING ME THAT THAT INVESTMENT IS NOW $2.7 BILLION BETWEEN BOTH COMPANIES AND I IMAGINE THAT THE STOCK IS GOING TO MOVE ON BOTH OF THOSE AS WE TRY TO UNDERSTAND WHAT NELSON PELTZ IS REALLY TRYING TO DO. WHETHER HE MAY HAVE A POSSIBILITY OF JOINING THE BOARD – IMAGINE CONVERSATIONS ARE GOING ON IN THAT REGARD AND OF COURSE HE HAS BEEN QUITE SUCCESSFUL WITH BOTH HEINZ AND WENDY'S AND A NUMBER OF OTHER CONSUMER PRODUCTS WHERE HE'S MADE OUT PRETTY WELL AND SHAREHOLDERS HAVE TOO SO PEOPLE ARE GOING TO BE WATCHING BOTH OF THOSE STOCKS.
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