Pepsi Bottling rejects PepsiCo acquisition offer

ASSOCIATED PRESS

Monday, May 04, 2009

SOMERS, N.Y. — Pepsi Bottling Group has turned down soft drink maker PepsiCo’s acquisition proposal, calling the offer “grossly inadequate.”

The $6 billion proposal for Pepsi Bottling and PepsiAmericas would have let PepsiCo control about 80 percent of its total North American beverage volume.

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Pepsi Bottling says its board’s decision was based on the unanimous recommendation of a special committee.

The company stated in a letter that it values its relationship with PepsiCo, but would not agree to a deal that doesn’t reflect its “true value.”

PepsiCo, which currently owns 33 percent of Pepsi Bottling, last month offered $29.50 per share for the remaining stake that it doesn’t already own. It initially spun off Pepsi Bottling in 1999.


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