Pepsi Challenge: Where's the Pact Between Mondelez and Trian?

NEW YORK (TheStreet) -- How come Mondelez International  (MDLZ), in allowing Trian Management's Nelson Peltz on its board of directors, isn't disclosing a pact that will bar the activist hedge fund from pressing for a sale of the company to PepsiCo (PEP)?

So far, all Mondelez investors and employees have to go with is a report of a pact with Trian Management first reported by CNBC's Andrew Ross Sorkin. TheStreet spoke to Trian Management about the pact, which the fund confirmed citing information already leaked to the press.

Still, it's unclear whether Mondelez shareholders or employees should bank on Trian Management's word that it has agreed to terminate efforts to sell the company to PepsiCo, another large holding of the hedge fund.

There is no mention of any pact from Mondelez or Trian Management in press releases or filings with the Securities and Exchanges Commission. All investors have to go with is leaked information to the business press. It's also unclear whether the pact would bar Trian from advocating corporate actions that could create conflicts of interest for the company.

"Mr. Peltz is subject to a confidentiality agreement similar to all of our directors, but there are no transactions between Mr. Peltz and us that would be reportable under Item 404(a) of Regulation S-K," Michael Mitchell, a Mondelez spokesperson said in an email.

Not the most convincing thing you've ever heard?

With Peltz and Trian on-board, Mondelez's board of directors will now expand to 12 members. Peltz will be included in the company's slate of nominees for election at its 2014 annual shareholder meeting.

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