US: PepsiAmericas rejects PepsiCo takeover bid
PepsiAmericas said today (7 May) that it has informed PepsiCo's board that the bid is "not acceptable" and "significantly undervalues" its business.
PepsiCo, which already owns 33% of PBG and 43% of PepsiAmericas, last month offered to buy all outstanding shares in the bottlers for a combined US$6bn.
Earlier this week, Pepsi Bottling Group (PBG) rejected a similar takeover proposal from PepsiCo as "grossly inadequate".
PepsiAmericas said that PepsiCo's offer to buy up shares at $11.64 per share in cash and 0.223 shares of PepsiCo common stock per PepsiAmericas common share is not in the best interests of its shareholders.
The bottler said: "Fundamentally, the proposal does not reflect the value of PepsiAmericas' strengths and stand-alone strategies, as evidenced by the company's strong first quarter results. It also substantially undervalues the synergies that can be obtained in the proposed transaction."
Both PBG and PepsiAmericas established special committees of independent directors to consider the PepsiCo proposal.
There's no doubt what's currently exercising the minds of beverage executives in the US - the threat of a Federal CSD tax. Now that President Obama has said the idea is worth investigating the ante ha...
The Coca-Cola Co reported flat earnings on Tuesday (20 October), with lower-than-expected quarterly revenue hurt by the stronger US dollar. Michelle Russell examines the fallout....
Britvic has declined to comment on a report that it is looking to raise US$150m (GBP91.5m) via a private share placement in the US....
PepsiAmericas has posted a fall in third-quarter profits, but declared itself "satisfied" with the performance....
The European Commission has approved PepsiCo's proposed purchases of two of its major bottlers, PepsiAmericas and Pepsi Bottling Group....
Ocean Spray and PepsiCo have expanded their strategic alliance in the US to include more of the cranberry grower cooperative's portfolio....
Following the news this week that The Coca-Cola Co is to open a still beverage production plant in China - the company's largest single investment in still beverage production facilities in the countr...
The top ten stories published on just-drinks this week:...
- Diageo's Q4/FY 2016 results - Preview
- Wine consumption and its health effects
- Can craft breweries compete in lager arena?
- Time to take stock of Constellation's Corona
- The Coca-Cola Co's Q2/H1 2016 results - Preview
- SABMiller puts brakes on A-B InBev integration
- Diageo names new TR head as Doug Bagley exits
- AB InBev seeks single buyer for European beers
- Gruppo Campari trials Negroni pre-mix
- Scotch drop hits Edrington as FY profits fall
- Global RTD insights - market forecasts, product innovation and consumer trends
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global travel retail insights - market forecasts, product innovation and consumer trends