2nd Pepsi bottler rejects PepsiCo buyout offer

[May 07, 2009]  MINNEAPOLIS (AP) -- PepsiAmericas is joining the larger Pepsi Bottling Group in rejecting a buyout offer from PepsiCo for its two biggest bottlers in North America.

PepsiAmericas Inc. says Thursday that the bid undervalues the company. Analysts have said PepsiCo will need to raise its $6 billion offer for the two bottlers.

The PepsiAmericas portion of the deal called for PepsiCo to buy up the remaining common shares it does not already own in the second-biggest Pepsi bottler.

PepsiCo -- which sells Gatorade, Mountain Dew, Tropicana and other drinks -- made the offer in April. Pepsi Bottling Group rejected the deal Monday.

PepsiCo has said the deal would cut costs in the long run and help it respond more quickly to a changing marketplace.

[Associated Press]

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