PepsiCo, Inc. (PEP), Mondelez International Inc (MDLZ): Big Investor Gets Active in Big Consumer Foods Giants

At the end of 2012, Nelson Peltz also accumulated up to 1% economic interest in one of the largest French food companies, Groupe Danone . Nelson Peltz said that there were three reasons for him to invest in the company.

First, the company owned a great “21^stcentury” portfolio under three business segments: Yogurt, Bottled Water, and Baby/Medical Nutrition. Groupe Danone is considered to be a Yogurt leader with 23% of the global market share. Second, Danone also has great exposure to emerging markets, which accounted for 52% of its total sales. Thus, Nelson Peltz thought the company was quite cheap. He thought that Danone should be worth €78 ($60.60) per share by the end of 2014.

Foolish bottom line

I am not sure about Nelson Peltz’s motives for those two big consumer foods giants, but with his successful activist investment record, investors might expect to see his push for corporate actions in the two companies in the near future.

The article Big Investor Gets Active in Big Consumer Foods Giants originally appeared on Fool.com written by Anh HOANG

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.