US: PepsiCo hints at walkout on PBG, PepsiAmericas deal
PepsiCo continued to defend its combined US$6bn offer for the bottlers yesterday (2 June), following a Pepsi Bottling Group (PBG) conference call in which the firm outlined why PepsiCo's bid price of $29.5 per share is too low.
PepsiCo retaliated with a hint that it may walk from the deal: "PepsiCo has a track record of being a disciplined buyer and will maintain that disciplined approach in this transaction."
It added: "If in the future PepsiCo remains a stockholder in a public PBG, PepsiCo intends to maintain a disciplined stance with regard to the commercial arrangements between PBG and PepsiCo."
The soft drinks giant, which already owns 33% of PBG and 43% of PepsiAmericas, rubbished PBG's claims that potential synergies from the deal may reach $850m. PepsiCo's offer is based on synergies of around $200m.
"By way of comparison, PBG previously communicated to PepsiCo that a combination of PBG and PepsiAmericas would generate synergies well below $100m," said PepsiCo.
"PepsiCo made its proposal to acquire its two anchor bottlers because of the need to strategically reshape the business and improve the system's competitiveness and growth prospects," it added.
Analyst Richard Corbett takes a look at the strong performance of the carbonates category, which has been suffering in other regions....
Britvic, the UK's largest soft drinks firm, is targeting acquisitions as it looks to build on strong sales and profits momentum in its most recent fiscal year....
Britvic, the UK's biggest soft drinks group, has said it sees "encouraging signs" on the market after reporting a jump in full-year profits and a healthy sales rise driven by core brands....
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PepsiCo has confirmed it plans to invest US$100m in Egypt next year....
PepsiCo's board of directors has declared a quarterly dividend of $0.45 per share on the soft drink giant's common stock....
PepsiCo has temporarily withdrawn documents filed with US the Federal Trade Commission on its acquisition of all outstanding shares in Pepsi Bottling Group and PepsiAmericas....
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....
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