News

US: PepsiAmericas rejects PepsiCo takeover bid

Most popular

The alcohol industry is about to become less sweet

Why a sale of Casella is no slam-dunk

Sustainability cues offer a marketing opportunity

How the sugar tax has transformed soft drinks

The digitalisation of the supply chain - Focus

MORE

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.


Related Content

PepsiCo takes control of SodaStream International in US$3.2bn deal

PepsiCo takes control of SodaStream International in US$3.2bn deal...

PepsiCo Q2 2017 results - Preview

PepsiCo Q2 2017 results - Preview...

PepsiCo makes plastics pledge as waste pressure mounts

PepsiCo makes plastics pledge as waste pressure mounts...

Indra Nooyi leaves PepsiCo in good shape, but what lies ahead for Ramon Laguarta? - Comment

Indra Nooyi leaves PepsiCo in good shape, but what lies ahead for Ramon Laguarta? - Comment...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?