Some investors in PepsiCo have expressed caution regarding activist shareholder Elliott Investment Management's proposal to spin out the soda maker's bottling network. Elliott's plan, which includes cutting costs and divesting certain brands like Quaker, has generated mixed reactions.
While some investors support suggestions for cost reduction and portfolio optimization, the idea of hiving off the bottling network is met with more apprehension. This indicates a debate within the investor community about the optimal strategic direction for PepsiCo.
The activist investor's push for a strategy reset, including refranchising bottling operations, is a significant development for PepsiCo. The cautious investor sentiment highlights the complexities and potential risks associated with such a major structural change.
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