PepsiAmericas rejects PepsiCo's acquisition offer
May 07, 2009
by FoodBusinessNews.net Staff
MINNEAPOLIS, MINN. — PepsiAmericas, Inc. has decided PepsiCo’s proposal to acquire all of the outstanding shares of PepsiAmericas’ common stock not already owned by PepsiCo "is not acceptable and is not in the best interest of the company’s shareholders."
PepsiCo offered $11.64 in cash and 0.223 shares of PepsiCo common stock for each PepsiAmericas common share.
"PepsiCo’s proposal significantly undervalues the strategic benefits of the system consolidation," the company 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."
PepsiCo made a similar offer to acquire outstanding stock of The Pepsi Bottling Group. That bottler also rejected the proposal on similar grounds.