US: PepsiAmericas rejects PepsiCo takeover bid

By | 7 May 2009

PepsiAmericas has followed in the footsteps of fellow drinks bottler Pepsi Bottling Group in rejecting a takeover bid from parent firm PepsiCo.

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.

Sectors: Soft drinks, Water

Companies: PepsiCo, PepsiAmericas, Pepsi Bottling

View next/previous articles

Currently reading -

US: PepsiAmericas rejects PepsiCo takeover bid

There are currently no comments on this article

Be the first to comment on this article

Related articles

UK: Britvic silent on financing move

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.

US: Central, Eastern Europe hampers PepsiAmericas in Q3

PepsiAmericas has posted a fall in third-quarter profits, but declared itself "satisfied" with the performance.

EUR: PepsiCo gains EU green light for PBG, PepsiAmericas buys

The European Commission has approved PepsiCo's proposed purchases of two of its major bottlers, PepsiAmericas and Pepsi Bottling Group.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page