(Updated to included Pepsi comment, updates stock price, in the
second and fifth paragraphs.)
DOW JONES NEWSWIRES
PepsiAmericas Inc. (PAS) followed Pepsi Bottling Group Inc.
(PBG) in rejecting PepsiCo. Inc.'s (PEP) offer to buy the rest of
the company it doesn't already own, calling it unacceptable.
Pepsi made the nearly $1.7 billion cash-and-stock offer for the
remaining 57% of PepsiAmericas last month, saying it would be
better to fully control its two biggest bottlers. The bid initially
valued PepsiAmericas' shares at $23.27 each, but the stock has been
trading above that since the offer was made public. It was recently
flat at $25.20.
As Pepsi Bottling directors said Monday, PepsiAmericas
independent board members contended Thursday that Pepsi is
"significantly" undervaluing potential synergies from a buyout and
that the offer "does not reflect the value of PepsiAmericas'
strengths and stand-alone strategies, as evidenced by the company's
strong first quarter results."
Earnings rose slightly in the period, excluding restructuring
charges and the prior-year quarter having an extra week of results.
Revenue rose slightly on price increases, but volumes continued to
decline amid ongoing weakness for soda sales.
Pepsi said in a statement Thursday that its offers for both
companies, which were a 17% premium when made public, "are full and
fair and in the best interests" of Pepsi Bottling, PepsiAmericas
and their shareholders.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com