Pepsi’s initial reaction to the suggestion that it merge its snack business with Mondelez in a $60bn deal

Nelson Peltz has launched a public campaign to transform PepsiCo, urging the group to first merge its snack business with Mondelez in a $60bn deal, and then to spin out its slow-growing soda business to shareholders.

The call by the activist investor behind Trian Partners ends months of speculation as to his plans and sets the stage for a battle with Indra Nooyi, PepsiCo chief executive, who said earlier this year that the company did not need any “transformational” deals.