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US: PepsiCo stands by bid for Pepsi Bottling Group, PepsiAmericas

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PepsiCo has defended its bid to buy out all outstanding shares in Pepsi Bottling Group and PepsiAmericas, despite both bottlers rejecting the offer this week.

PepsiCo said yesterday (7 May) that its bid is "full and fair" and is in the best interests of Pespi Bottling Group (PBG) and PepsiAmericas shareholders.

The soft drinks giant last month offered to pay a combined US$6bn for outstanding shares in the bottlers. It owns 33% of PBG and 43% of PepsiAmericas and has offered to pay $29.5 and $23.27 per share to the groups respectively.

Earlier this week, PBG rejected the bid as "grossly inadequate". It was followed by PepsiAmericas yesterday, which accused PepsiCo of "significantly undervaluing" its business.

PepsiCo said: "PepsiCo made full and fair offers for both companies, representing a premium of 17.1% over the closing price of the common stock of PBG and PAS on April 17, 2009."

PBG's board of directors has approved a shareholder rights plan, known as a poison pill, in order to bulk up its defences against a hostile takeover.


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