Peltz's Trian Fund Management sent a letter to PepsiCo last week reiterating his wish that the company merge with Mondelez (MDLZ), owner of Oreo cookies and Cadbury chocolates, among other brands. He also said he planned to encourage other shareholders to back the divestiture plan.
In its letter, disclosed in a regulatory filing, PepsiCo dismissed the proposal as "financial engineering" and repeated its plan to keep the company intact.
"We have carefully studied management's extensive analysis of the current company structure and its beverage business and management's conclusions that much of Trian's data is selective and, in many instances, misused," said Ian Cook, presiding director of PepsiCo's board. "Our board and management team are confident in the thoroughness of this analysis and in the conclusion that PepsiCo's value is maximized as an integrated food and beverage company."
Peltz, who sits on Mondelez's board, is one of the food and beverage company's largest shareholders. He also owns less than 1 percent of PepsiCo shares, which have declined this year amid strong competition from Coca-Cola (KO) and other drink makers.
PepsiCo shares closed at $79.07, up 0.5 percent.