PepsiCo Still Committed To Dividends, Buybacks
05 August 2009 - 12:45AM
Dow Jones News
PepsiCo (PEP), which Tuesday announced a $7.8 billion pact to
buy its two largest bottlers, said it is still committed to
returning cash to shareholders through dividends and buybacks.
Speaking to investors in a conference call, PepsiCo executives
said the deal would create annual pre-tax savings of $300 million
by 2012. The company discovered additional opportunities for
synergies, or savings, during the course of its discussions with
the bottlers, they said. PepsiCo said it would still have the
flexibility to make small "tuck-in" acquisitions or deals.
Chief Executive Indra Nooyi said the deal would help in a tough
retail environment in North America.
-By Anjali Cordeiro, Dow Jones Newswires; 212-416-2200;
anjali.cordeiro@dowjones.com