According to reports, the activist investor William A. Ackman has raised a $5.5 billion stake in Mondelez International, which manufactures Cadbury chocolate and Oreo cookies. It was announced by Pershing Square Capital Management that it aims at informing the Securities and Exchange Commission that it has a 7.5% stake that includes forward contracts and options, in the company.

Mr. Ackman thinks that Mondelez needs to increase its revenue and cut costs or put itself for sale. A person related to the investment, however not allowed talking about it publicly said so. Ackman has betted on other food companies such as McDonald's.

Mr. Ackman got a 22% stake in Nomad Holdings Ltd., which is a special-purpose acquisition company, or SPAC and this kind of medium increases money from investors in order to make purchases. Nomad is having its focus on food companies, and earlier it announced that it had yielded a deal to acquire Iglo Foods Holdings that sells frozen foods and fish sticks in Europe, for nearly $2.9 billion.

As per reports, it could lead to a different situation at Mondelez, where activist investor, Nelson Peltz, is sitting on the board. Mr. Peltz's hedge fund, Trian, started working up for change at the company a number of years ago. He supported a merger between PepsiCo and Mondelezin July 2013.

According to a spokeswoman for Mondelez, Valerie Moens, "We welcome Pershing Square as investors in our company. We'll continue to focus on executing our strategy and on delivering value for all our shareholders".