Mondeléz International (MDLZ)

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Monday Should Be Very Interesting,,,,,,,,,

Oh Yes,,,,,,

March 24, 2013- The value of the common stock of top United States packaged food companies, Mondelez International Inc. (MDLZ) and PepsiCo Inc. (PEP) increased significantly on Friday purely on speculation that the two giant companies might merge.

That speculation occurred after a report was released stating that activist investor Nelson Peltz had purchased large amounts of the outstanding stock available for both companies.

That report appeared in an article published in the United Kingdom’s Daily Telegraph in which the columnist claimed that Peltz had spent two billion dollars to buy shares in both organizations through his investment vehicle Trian Fund Management.

The columnist offered the opinion that the huge purchase of stock would enable Peltz to push for a merger of the two American companies.

Many analysts believe that such a merger makes lots of sense. It would create a marriage that would unite salty snacks such as Doritos and Tostitos with sweets like Cadbury’s chocolate and iconic Oreo cookies.

Importantly, the merged companies would have more than one hundred billion dollars in revenue and twenty billion dollars in operating earnings annually.

Mondelez shares rose four percent on Friday to $29.73. PepsiCo stock did well, too. Its shares increased 3.3% to $78.64.