Pepsi Bottling rejects PepsiCo acquisition offer

[May 04, 2009]  SOMERS, N.Y. (AP) -- Pepsi Bottling Group has turned down soft drink maker PepsiCo's acquisition proposal, calling the offer "grossly inadequate."

The $6 billion proposal for Pepsi Bottling and PepsiAmericas would have let PepsiCo control about 80 percent of its total North American beverage volume.

Pepsi Bottling says its board's decision was based on the unanimous recommendation of a special committee.

The company stated in a letter that it values its relationship with PepsiCo, but would not agree to a deal that doesn't reflect its "true value."

PepsiCo, which currently owns 33 percent of Pepsi Bottling, last month offered $29.50 per share for the remaining stake that it doesn't already own. It initially spun off Pepsi Bottling in 1999.

[Associated Press]

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