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In places such as the U.S. where both do big business, Pecoriello said consolidating distribution networks could result in cost savings of $3.4 billion. He also noted that PepsiCo spinning off its beverage business wouldn't necessarily negate the "Power of One" strategy because independent companies could maintain marketing partnerships. For instance, PepsiCo still provides beverages for the fast-food chains owned by Yum Brands Inc., which it spun off in 1997. Still, the deal would present plenty of challenges. JP Morgan analyst Ken Goldman noted that Mondelez has an array of products that could be too complicated "to appeal to a larger suitor." He also noted that the size of the company could raise antitrust issues. At the same time, Goldman said he wouldn't take any potential interest by Peltz lightly. In a short statement, PepsiCo said that it doesn't comment on market rumor or speculation. "As we've said before, we are making strong progress in our strategy to deliver long-term growth and create shareholder value," it said. Mondelez International Inc., which split from Kraft Foods Group Inc. last year, also said it was satisfied with its portfolio as it stands. A representative for Peltz's Trian Fund Management declined to comment.
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