PepsiCo shares surged after Elliott Investment Management acquired a significant stake, making it one of the company’s top five investors. The stock rose 4.5% in premarket trading. Elliott’s $4 billion bet on Pepsi aims to drive changes, although specifics are unclear at this time. Pepsi has been focusing on cost-cutting and profit margin improvement strategies.

In July, Pepsi reported quarterly earnings that exceeded expectations, with plans to rebound from weak North American demand. Elliott, known for shareholder activism, has successfully influenced companies like Phillips 66 and Southwest Airlines. The firm’s interest in Pepsi signals potential changes ahead, driving the stock’s rise.

Read more at CNBC: Pepsi shares jump 4% after WSJ reports Elliott planning major activist campaign