PepsiCo said its board again rejected activist investor Nelson Peltz's renewed call to split the company's beverage business from its flourishing snacks division.
Ian Cook, presiding director of the company's board, in a letter to Peltz on Thursday said the board and management were "comfortable" and in "complete alignment" in rejecting his proposal.
Cook said PepsiCo had analyzed the company's current structure and its beverage business and concluded that it was better off as a combined food and beverage company.
(Read more: Peltz, Pepsi duke it out)
"In short, the board and management have concluded that the financial engineering you (Peltz) propose erodes value for shareholders rather than creates value," Cook wrote in the letter sent to Trian Fund Management, Peltz's investment fund.