Barring other tactics, PepsiCo Inc. (NYSE:PEP) will need to raise its $6 billion cash-and-stock bid for its two biggest bottlers.
The transactions committee at PepsiAmericas Inc. (NYSE:PAS)
followed suit with the special committee at larger Pepsi Bottling Group Inc. (NYSE:PBG), saying the offer "significantly
undervalues the strategic benefits of system consolidation." The bottler, which posted sales of $4.8 billion in 2008, also pointed to its
first-quarter results as evidence of its strength. PepsiAmericas is playing a little hardball as well, extending its shareholder rights plan by a year to May 20, 2010.
Pepsi's bid would allow it to control about 80% of its total U.S. beverage volume. After the first rejection, chairman and CEO Indra Nooyi seemed determined, saying that buying the bottlers would save the company money in the long run and help it
respond quicker to a changing marketplace. -
Baz Hiralal
More to come on Pipeline (subscription req'd)
PepsiAmericas rejects bidPepsi Bottling Group rejects bidNooyi comments after 1st rejectionPepsiCo Raises Dividend by 6%
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Juergen Lasowski
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