PepsiCo Responds to PBG and PepsiAmericas after Acquisition Proposal
On April 19, 2009, PepsiCo made a proposal to acquire all of the outstanding shares of common stock that it does not already own in its two largest anchor bottlers, The Pepsi Bottling Group and PepsiAmericas, at a value of $29.50 per share for PBG and $23.27 per share for PAS. PepsiCo currently owns 33 percent of the outstanding shares of PBG and 43 percent of the outstanding shares of PAS.
PepsiCo made full and fair offers for both companies, representing a premium of 17.1 percent over the closing price of the common stock of PBG and PAS on April 17, 2009. Compared to the 30-day average closing prices, the offer prices represented a premium of 36 percent for PBG and 33.4 percent for PAS.
On May 4, 2009, PBG announced that its Board had rejected PepsiCo's proposal. In addition, PBG also announced that its Board had approved adoption of a shareholder rights plan, commonly referred to as a "poison pill," as well as retention arrangements for certain key employees and amendments to PBG's bylaws regarding notice and informational requirements for stockholder actions.
On May 7, 2009, PAS announced that its Board had rejected PepsiCo's proposal.
PepsiCo reiterates its belief that its offers are full and fair and in the best interests of PBG, PAS and their respective shareholders.
For more information about PepsiCo's proposal with respect to PBG and PAS, go to http://www.transactioninfo.com/pepsico.
PepsiCo made full and fair offers for both companies, representing a premium of 17.1 percent over the closing price of the common stock of PBG and PAS on April 17, 2009. Compared to the 30-day average closing prices, the offer prices represented a premium of 36 percent for PBG and 33.4 percent for PAS.
On May 4, 2009, PBG announced that its Board had rejected PepsiCo's proposal. In addition, PBG also announced that its Board had approved adoption of a shareholder rights plan, commonly referred to as a "poison pill," as well as retention arrangements for certain key employees and amendments to PBG's bylaws regarding notice and informational requirements for stockholder actions.
On May 7, 2009, PAS announced that its Board had rejected PepsiCo's proposal.
PepsiCo reiterates its belief that its offers are full and fair and in the best interests of PBG, PAS and their respective shareholders.
For more information about PepsiCo's proposal with respect to PBG and PAS, go to http://www.transactioninfo.com/pepsico.