NEW YORK (TheStreet) -- Activist investor Nelson Peltz will no longer push for a deal between Mondelez (MDLZ) and PepsiCo (PEP)Mondelez shares fell 2.6% to $34.34 on Tuesday. Shares of PepsiCo rose 0.4% to $82.53.
Peltz, now a member of the Mondelez board, once pushed for a merger of the maker of cookies such as Oreo and Chips Ahoy and the Frito-Lay business of PepsiCo. A Peltz spokeswoman told The Associated Press that Pepsi wasn't interested in a deal.
In a recent note to investors, JPMorgan analyst Ken Goldman said Peltz joining the Mondelez board is a way for the snack producer to avoid a proxy fight. Such a proxy vote could have seen CEO Irene Rosenfield and other board members "voted off the island" because of the company's recent disappointing performance, the analyst said.
Mondelez was once part of Kraft (KRFT), but split from the food giant to focus more on snack foods.
TheStreet Ratings team rates MONDELEZ INTERNATIONAL INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MONDELEZ INTERNATIONAL INC (MDLZ) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow."