Second Pepsi bottler snubs buyout

http://news.bbc.co.uk/go/rss/-/1/hi/business/8038467.stm

Version 0 of 1.

PepsiAmericas has joined Pepsi Bottling Group in rejecting a buyout from the world's second-biggest manufacturer of soft drinks, PepsiCo.

PepsiCo announced on 20 April that it planned to buy the stakes in its two biggest bottlers it does not already own for $6bn (£4bn).

PepsiAmericas said the PepsiCo offer "significantly undervalues" the company and the potential synergies.

PepsiCo has said both bottlers must accept the offer for it to go ahead.

PepsiCo spun off the bottlers in 1999. It currently owns 43% of PepsiAmericas and 33% of Pepsi Bottling Group.

The price it offered represented a 17% premium above their closing share prices the Friday before the offers were made.

PepsiAmericas said the offer "significantly undervalues the strategic benefits of system consolidation... and the synergies that can be obtained in the proposed transaction".

Earlier in the week, Pepsi Bottling Group criticised the $29.50 per share offer, which values the company at $6.49bn, as "grossly inadequate".