Pepsi Bids $6 Billion for Largest Bottlers, Posts Flat Profit |
| Wall Street Journal - Apr 20, 2009 |
PepsiCo Inc. launched a $6 billion takeover bid for its two largest independent bottlers late Sunday, a major strategy shift that signals the company's intention to overhaul how it makes and distributes its products to consumers.
The simultaneous offers for Pepsi Bottling Group Inc. and PepsiAmericas Inc. value each company's shares at about 17% above their trading price Friday. PepsiCo is offering $29.50 in cash and stock for each share of Pepsi Bottling, valuing the company at about $6.4 billion. It is making a separate offer for PepsiAmericas, at $23.27 per share, that values that bottler at about $2.9 billion.
Meanwhile, Pepsi posted first-quarter net income of $1.14 billion, or 72 cents a share, compared with $1.15 billion, or 70 cents a share, a year earlier. There were 3.8% fewer shares outstanding in the most recent period. The latest results also included a $25 million charge related to its restructuring plan. Revenue slipped 0.8% to $8.26 billion.
Read Full Article from Wall Street Journal
- Posted: 2009-04-20 07:33:52
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