Pepsi Bottling Group Rejects PepsiCo Bid

The Pepsi Bottling Group (PBG) has rejected PepsiCo's bid for the company on the grounds that the offer was 'grossly inadequate' and that PepsiCo had understated the potential synergies. In mid-April soft drinks giant PepsiCo launched a takeover bid for its two largest independent bottlers, PBG and PepsiAmericas. PepsiCo already owns around 43% of the outstanding shares of PepsiAmericas and 33% of those outstanding in PBG. The cash and share offer represented a premium of around 17% on both companies' closing price on April 17 and would mean PepsiCo controls around 80% of its North American distribution.

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