DOW JONES NEWSWIRES
Pepsi Bottling Group Inc. (PBG) on Monday signed a letter of
intent to acquire Ab-Tex Beverage Ltd., part of the big bottler's
continuing string of acquisitions.
The company has said it wants to pursue its own growth plan and
not be acquired at the current price offered by PepsiCo Inc.
(PEP).
In May, Pepsi Bottling rejected a nearly $4.2 billion offer from
PepsiCo to buy the remaining two-thirds stake it doesn't already
own in its biggest bottler, calling the offer grossly inadequate.
PepsiCo got a similar rejection on its smaller but parallel offer
to buy another bottler, Minneapolis-based PepsiAmericas Inc.
(PAS).
Pepsi Bottling Chairman and Chief Executive Eric Foss said the
proposed deal for Ab-Tex, terms of which weren't disclosed, would
provide access to a regional growth market and increase
efficiencies. Privately owned Ab-Tex operates in Central Texas and
bottled major beverage brands including Pepsi-Cola, Dr Pepper,
Mountain Dew and 7UP.
The company recently bought another Texas bottler, one of four
deals completed or announced since late September. The Ab-Tex deal
is expected to close in the third quarter.
Pepsi Bottling's shares closed at $33.41 on Friday and didn't
trade premarket. The stock is up by nearly half this year.
-By Tess Stynes, Dow Jones Newswires; 201-938-2473;
tess.stynes@dowjones.com