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  "documentTitle": "PepsiCo (PEP)",
  "authorId": "06_Trian_Partners",
  "authorName": "Nelson Peltz",
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  "presentationDate": "2014-02-19 00:00:00",
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  "notes": "The text argues that PepsiCo's centralized structure is hindering growth and that a split would allow for better management and performance.",
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      "text": "We believe this share price decline sends two clear messages: 1) PepsiCo is worth more and would be run better as two separate companies; and 2) the Board and management's decision not to separate goes against shareholders' best interests.",
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      "text": "Other notable observations from last week's announcement: $3bn of cost savings from 2012-2014 are not expected to hit the bottom line... PepsiCo continues to lose market share in its struggling Americas Beverage unit...",
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      "text": "market capitalization: $15bn",
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      "text": "Our recommendations are consistent with the successful blueprint that PepsiCo utilized for decades when the company was run entrepreneurially and was the \"industry disruptor.\"",
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      "text": "The market appears to agree with us. When we publicly presented our White Paper last July, which advocated a separation of beverages and snacks, the market ascribed an increased probability to such a transaction.",
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      "text": "and nearly 100 bps of tax rate favorability, management expects only 7% constant currency EPS growth in 2014 – the low-end of its long-term target and its peer group.",
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      "text": "While the company has been willing to use its balance sheet to prop up EPS through share repurchases, we do not understand why it refuses to use its balance sheet to create stronger standalone snacks and beverage businesses.",
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