PepsiCo CEO Continues To See Benefits From Bottler Deals
07 May 2009 - 1:44AM
Dow Jones News
PepsiCo Inc. (PEP) Chief Executive Indra Nooyi, speaking at the
beverage maker's annual meeting, highlighted the benefits the
company would get from acquiring its bottlers, but didn't say how
the company will proceed with the deals.
One of its bottlers, Pepsi Bottling Group Inc. (PBG), this week
rejected the bid Pepsi made a few weeks ago. The bottler called the
bid undervalued.
At the annual meeting, Nooyi simply reiterated Pepsi's prior
arguments for its interest in buying Pepsi Bottling and
PepsiAmericas Inc. (PAS), saying the deals would offer cost savings
that would allow for further reinvestment in PepsiCo brands. She
said she wouldn't provide further updates at the meeting.
The company expects its Americas beverages business to show
sequential improvement this year, she said. Nooyi said the company
continues to maintain a "maniacal" focus on cash and that in recent
months, it has made a discretionary $1 billion contribution to its
pension plan.
-By Anjali Cordeiro, Dow Jones Newswires; 201-938-2408;
anjali.cordeiro@dowjones.com