PepsiCo (PEP) will review its North American supply chain as one of a number of options it’s looking at as it works on a settlement with activist investor Elliott Investment Management.
An announcement on an agreement with Elliott could come as early as this week, according to a Bloomberg report on Monday, which cited people familiar with the matter. The snack and drinks maker is also likely to look at efforts to develop new products as well as pricing and packaging for them.
PepsiCo (PEP) is also reviewing changes to capital allocation, according to the report. No board changes are expected as part of a settlement with the activist.
A potential settlement comes after Elliott took a $4 billion stake in PepsiCo (PEP) in September and pushed for engagement with the company’s board. Elliott wants PepsiCo to evaluate refranchising its bottling network, and divesting non-core and underperforming assets.
The WSJ reported on Thursday that Elliott was nearing a settlement with PepsiCo (PEP).
PepsiCo declined to comment to Bloomberg. Elliott couldn’t immediately be reached for comment.