Breaking News from CNBC's Andrew Ross Sorkin: Nelson Peltz Will Not Push for Pepsi/Mondelez Deal
WHEN: Today, Tuesday, January 21, 2014
WHERE: CNBC's "Squawk Box"
Following is the unofficial transcript of breaking news from CNBC's Andrew Ross Sorkin.
All references must be sourced to CNBC.
ANDREW ROSS SORKIN: THANK YOU, MICHELLE. WE DO HAVE SOME BREAKING NEWS AS WE TALKED ABOUT IN THE LAST HOUR. NELSON PELTZ JOINING THE BOARD OF MONDELEZ AND IRENE ROSENFELD, THE CEO OF THAT COMPANY COMING HERE TO DAVOS. ALSO INDRA NOOYI OF PEPSI IS GOING TO BE HERE IN DAVOS AS WELL. THAT IS IMPORTANT BECAUSE THERE HAS BEEN TALK OF NELSON PELTZ PUSHING FOR A MERGER. HOWEVER, I JUST GOT OFF THE PHONE WITH NELSON PELTZ AND HERE'S THE HEADLINE. AS PART OF HIS AGREEMENT TO JOIN THE BOARD OF MONDELEZ, HE WILL NOT BE PUSHING FOR A MERGER BETWEEN MONDELEZ AND PEPSI. THAT IS A VERY IMPORTANT DISTINCTION. A LOT OF PEOPLE WAKING UP THIS MORNING SCRATCHING THEIR HEADS LOOKING AT THIS ANNOUNCEMENT THAT HE IS JOINING THE BOARD OF MONDELEZ THINKING THAT THIS MEANS THAT A DEAL WITH PEPSI IS IN THE WORKS. THAT IS NOT THE CASE. HE IS ACTUALLY, AS PART OF HIS AGREEMENT TO JOIN THE BOARD, SAID THAT HE WILL NOT BE PROMOTING, PUSHING OR ADVOCATING FOR SUCH A TRANSACTION. INSTEAD HE IS GOING TO CONTINUE TO WORK WITH PEPSI OR AT LEAST TRY TO PUSH PEPSI BECAUSE HE IS NOT ON THEIR BOARD OF COURSE, TO TRY TO BREAK THAT COMPANY UP – SPLIT IN TWO. HE BELIEVES OF COURSE THERE IS MORE VALUE THERE. I SHOULD ALSO NOTE ONE OF THE FUNNY THINGS HE MENTIONED WHEN WE WERE ON THE PHONE – THE LAST TIME WE SPOKE HE HAD TRIED OR AT LEAST TALKED ABOUT WANTING TO CHANGE THE NAME OF MONDELEZ. SAID HE THOUGHT ACTUALLY THE VALUE HAD GONE DOWN SIMPLY BECAUSE OF THE NAME, BUT HE HAS NOW SAID THAT HE IS GOING TO WORK WITH IRENE AND TRY AND STICK WITH THE NAME – AT LEAST FOR NOW AND WE WILL SEE WHERE THAT GOES. WORTH NOTING BY THE WAY THAT HE DID WORK WITH IRENE WHEN SHE WAS AT KRAFT, IN BREAKING THAT COMPANY UP AND IN INCREASING THE COMPANY'S MARGINS. SO YOU ARE GOING TO SEE A POP ON THAT STOCK TODAY. BUT IN TERMS OF WHAT IT ALL MEANS TO PEPSI, A LITTLE BIT OF A DIFFERENT STORY. WE ARE, OF COURSE, IN DAVOS SWITZERLAND AS I SAID LOTS OF BIGS NAMES GOING TO BE HERE INCLUDING INDRA AND IRENE. BUT LOTS OF OTHER CEOS AS WELL. WE ARE GOING TO BE TALKING TO ANDREW LIVERIS IN JUST A COUPLE OF MOMENTS AND THEN LATER IN THE HOUR WE ARE ALSO GOING TO TALK TO KEN ROGOFF. AND THEN THAT JUST GETS STARTED AS THE WEEK PROGRESSES. WE HAVE A HUGE LINE-UP WHICH YOU ARE SEEING PROMOS FOR ALL DAY. IN THE MEAN TIME, I AM GOING TO SEND IT BACK TO YOU BECAUSE WE ARE GOING TO COME BACK IN JUST A LITTLE BIT LIVE HERE FROM DAVOS.
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