Posted on May 11, 2009 at 11:47 AM
Filed under: Acquisitions | Case Studies | Corporate Strategy | Law
Tagged: Pepsi Bottling Group , PepsiAmericas , PepsiCo , poison pill

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Instead of raising its $6 billion cash-and-stock bid for its two biggest bottlers, PepsiCo Inc. (NYSE:PEP) filed suit in Delaware against Pepsi Bottling Group Inc. (NYSE:PBG) and certain of its directors. The suit claims the bottling group's board kept Pepsi in the dark about a meeting where it adopted a poison pill, made new executive compensation arrangements and changed PBG bylaws.

PepsiAmericas Inc. (NYSE:PAS) and Pepsi Bottling have rejected the offer to be acquired as being too low, saying that PepsiCo is significantly undervaluing potential synergies the three would have.

PepsiCo owns 33% of the outstanding shares of PBG and 43% of the outstanding shares of PepsiAmericas. Centerview Partners LLC and Banc of America Securities LLC and Merrill Lynch are advising PepsiCo, and Davis Polk & Wardwell LLP is acting as legal counsel. - Baz Hiralal

See the statement from PepsiCo
Also see a recent Deal magazine article


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