UPDATE 1-Trian's Peltz wants PepsiCo to buy Mondelez
NEW YORK, July 17 (Reuters) - Activist shareholder Trian Fund Management said on Wednesday it wants PepsiCo Inc to buy Oreo cookie maker Mondelez International Inc for $35 to $38 a share, or separate its snacks and beverage business.
Officials from both companies were not immediately available for comment, but Trian said in a statement that PepsiCo had indicated it was not inclined to pursue the acquisition.
PepsiCo, maker of Frito-Lay snacks and Gatorade sports drink, has repeatedly said it sees no need for large-scale mergers.
Speaking at a conference on Wednesday that was broadcast on CNBC, Trian's Nelson Peltz said he plans to meet with Mondelez Chief Executive Irene Rosenfeld in the coming weeks.
Trian said the combination of PepsiCo and Mondelez would create substantial cost savings and would benefit both companies' shareholders. Trian estimates the merger could lead to an implied value of $175 per share for PepsiCo and $72 per share for Mondelez by the end of 2015.
PepsiCo shares were up 1.7 percent at $85.42 on the New York Stock Exchange, while Mondelez shares rose 2.2 percent to $30.52 on the Nasdaq.
The news came after sources told Reuters that a timeframe agreed upon between PepsiCo and Peltz to privately address the activist investor's suggestions for improving shareholder returns may be closing.