Trian's Nelson Peltz Releases Investor Letter to Shareholders

Trian Partners' Nelson Peltz released his investor letter to shareholders. In the letter, he disclosed that his fund underperformed the S&P 500 Index in the quarter as the fund sold its stake in Danone DANOY while reducing its stakes in State Street STT, Family Dollar FDO, and Ingersoll Rand IR.

Also, he gave further clarity on his proposal for PepsiCo PEP and Modelez MDLZ to merge. Trian says PepsiCo is "increasingly unmanageable" and states the company has "underperformed its peers as it grapples with the differing needs of its fast-growth (snacks) and slow-growth (beverages) and resulting inherent conflict in allocating its resources."

Trian would like Pepsi to acquire Mondelez to maximize shareholder value, creating "a leading global snacks company with one of the most valuable brand portfolios in the world." Trian estimates the merger may lead to approximately $175 of implied value per PepsiCo share and $72 of implied value per Mondelez share by the end of 2015—more than double the current prices of those stocks.