PepsiCo With Approval From Teleios Capital Plans To Buy SodaStream

PepsiCo announced plans to buy SodaStream for $3.2 billion and has already received public approval from activist investor Teleios Capital. The purchase price is a 32% premium to the company’s 30-day volume weighted average and a 420% premium to the share price at the date of Teleios’ initial 5.7% stake in November 2016.

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Q2 hedge fund letters, conference, scoops etc

Teleios co-founder Adam Epstein spoke of the firm’s delight and praised PepsiCo for recognizing the value of SodaStream’s market domination in its attempts to reach customers in their homes as U.S. grocers transform with the times.

#MICUS: Value Managers Say Their Style Is Far From Over

Structured ValueNote of Chuck Bath, David Wallack, and Ramona Persaud's presentation from the 2020 Morningstar Investment Conference. Q2 2020 hedge fund letters, conferences and more Dead Again? Value Managers Say Their Style Is Far From Over For more than a decade, large value has been one of the most difficult factors to own. Moderator Linda Abu Read More

What we'll be watching for this week

  • Will Malaysia-based APFT announce a special meeting date requisitioned by concerned shareholders?
  • Will the Securities and Exchange Commission launch an investigation into Elon Musk’s tweets regarding taking Tesla private?
  • Will Barclays bend to Ed Bramson’s Sherborne Investors and replace its chairman?

Activist shorts update

The Alberta Securities Commission (ASC) dismissed an application from staff to temporarily ban Marc Cohodes from trading in securities of Badger Daylighting. They claimed the short seller was disseminating misleading or untrue statements about the company.

Cohodes shorted the excavating services provider in May last year before accusing the firm of illegally dumping toxic and hazardous waste and claiming its numbers did not add up. The ASC conducted a probe into these allegations which it completed in May, “with no enforcement action taken.”

The ASC is currently investigating the short seller’s behavior regarding Badger. Cohodes has maintained that the allegations against Badger are true and are based on trustworthy sources.

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Chart of the week

The proportion of public activist demands made at consumer goods companies globally, that were board-related (between January 1 and August 17).

COTW 21-08