Pepsi shares jump by 5 %, as activist Eliott get $ 4 billion, and sees the opportunity of “historical” value

Pepsico The shares emerged on Tuesday after Elliott Investment Management acquired a large share, as the activist investor sees a “rare” and “historical” opportunity to turn into the famous soft drink giant.

Pepsico shares have increased more than 5 % in pre -market trade. The stock decreased about 2 % this year, which is dramatically left behind from the broader market.

The value of Elliot’s bet in Pepsi founders in Paul Singer is $ 4 billion, and it has become the five best active investors in the consumer giant except for index boxes, according to FactSet. The active investor sent a presentation and a message to the Pepsi Board on Tuesday, in detailing a clear agenda focused on restoring business momentum.

“Although it is unfortunate, this disappointing path has created a historical opportunity: with the correct mentality and an appropriate ambitious transformation plan, Pepsico today represents a rare opportunity to stimulate a leading global institution and cancel the value of important shareholders,” Elliot wrote in his letter.

The Wall Street Journal reported for the first time Elliot’s new stake earlier on Tuesday.

Elliot said she hopes to work together to help Pepsi build her success heritage and achieve her full potential.

Pepsi was lowering costs and trying to improve their profit margins. The company closed two manufacturers of its business in North America during this quarter. Pepsi said he was trying to make transportation and logistics more efficient. The company also evaluates how to spend its marketing dollars to ensure that it gets the best return on its investments.

In July, Pepsi mentioned The quarterly profits and revenues This leads analysts’ expectations, as the company expected the weak demand in North America to recover with the continued changes of strategy.

Elliott, with more than $ 70 billion of management assets, has a long history of activity that sometimes resulted in strong returns for investors. He is a great pregnant woman for Phillips 66 and SouthWest Airlines and he leads changes in these two companies.

The company also participated in a 15 -year legal battle against the Argentina government due to backward bonds. Elliot ended with a $ 2.4 billion settlement payments, which is a huge return on his initial investments.