PepsiAmericas has repurchased 10m shares, or approximately 6.8%, of its outstanding common stock. The shares were purchased from JPMorgan under an accelerated share repurchase program at $20.03 per share for a total cost of approximately US$200m.

The accelerated share repurchase program permitted the Pepsi bottler to purchase the shares immediately, while JPMorgan will purchase shares in the market over time. The completion of the program will be based on PepsiAmericas average daily trading volume and is expected to be finished within six to nine months, the company said. At the end of the program, PepsiAmericas may receive or be required to pay a price adjustment based on the actual cost of JPMorgan share purchases.

"PepsiAmericas' business continues to perform well, and we are confident in the cash flow levels that we generate and the strength of our balance sheet," said Robert C. Pohlad, chairman and CEO. "We believe that reducing our shares outstanding is an appropriate use of our capital.

"The purchase of shares under the accelerated share repurchase program reflects our confidence in PepsiAmericas' long-term potential for growth and profitability while continuing to invest in our core business and maintaining the flexibility to make prudent acquisitions," Pohlad added.

In December 2002, the board of directors authorised a share repurchase program of 20m shares. After the accelerated share repurchase, the company said, it had 6.4m shares remaining under the share repurchase authorisation. The company may repurchase these remaining shares from time to time in the open market or through negotiated or accelerated share repurchase transactions, subject to market conditions.

After the repurchase, PepsiAmericas had 138.3m common shares outstanding.