(Reuters) - Shares of food makers Mondelez International Inc and PepsiCo Inc rose on Friday after a UK newspaper reported that activist shareholder Nelson Peltz has been building stakes in them.
Citing sources familiar with the matter, Britain's Daily Telegraph reported that Peltz had spent $2 billion on shares of the companies through his investment vehicle, Trian Fund Management. The paper speculated that Peltz could then push for a merger of the two companies.
A spokeswoman for Trian declined to comment on the report. Spokesmen for PepsiCo and Mondelez declined to comment on rumor or speculation, though both indicated the companies were happy with where they were now.
"We're satisfied with the portfolio where it stands today," said a Mondelez spokesman.
"We are making strong progress in our strategy to deliver long-term growth and create shareholder value," said a PepsiCo spokesman. "We do not see the need for any large scale M&A."
Peltz is no stranger to the food industry, or to PepsiCo and Mondelez in particular.
He was an investor in Britain's Cadbury Schweppes when the company agreed to spin off its soft drinks unit into Dr Pepper Snapple Group before the remaining Cadbury was acquired by Kraft for some $20 billion. That deal in 2010 set the stage for the company break-up into Kraft Foods Group and Mondelez.
Peltz has also been active at H.J. Heinz, which just agreed to be bought by 3G Capital and Berkshire Hathaway , Wendy's and Family Dollar Inc.
Trian reported a stake in PepsiCo in late 2011, a time when there was a lot of market speculation over whether the maker of Tropicana juice, Frito-Lay snacks and Quaker oatmeal was worth more broken up or together. Its share price had been stagnant for about five years and its North American drink business was losing share to that of Coca-Cola.
Mondelez shares rose $1.20, or 4.2 percent, to $29.76 on the Nasdaq, while PepsiCo shares were up $2.34, or 3 percent, at $78.49 on the New York Stock Exchange.
(Reporting By Martinne Geller in New York; Editing by Nick Zieminski and Kenneth Barry)
