PepsiCo not just into Pepsi Bottling interest, shares fell
Pepsi Bottling Group Inc on Monday said shares fell after it rejected a PepsiCo offer to acquire outstanding shares in common stock on inadequate value and not in the best interest of the company and its stockholders.
It offered $29.50 per share to acquire all the outstanding shares of the Company’s common stock not owned by PepsiCo. The $6 billion attempt was to cut costs and secure more control of its distribution.
The company said the proposed bid was on opportunistic timing as it was made before announcing a quarter that exceeded expected first quarter earnings of 2009.
Recently, Pepsi Bottling Group posted first quarter 2009 net income of $57 million or $0.27 per share up from $28 million or $0.12 per share a year ago. Revenue decreased 5 percent worldwide.
It also plans to acquire Better Beverages, Ltd., a Pepsi-Cola and Dr Pepper franchised bottler in Texas, which expected to be completed during the second quarter of 2009.
Shares of PBG fell 7 cents to 0.22% at $31.34 in the regular trading.