PepsiCo committed to consolidation of Pepsi Bottling, PepsiAmericas

By Lisa Kerner

Charlotte, N.C., June 2 - PepsiCo, Inc. said it is convinced that there are annual synergies of at least $200 million available through the consolidation of the two anchor bottlers and PepsiCo.

The company disagrees with estimates released by Pepsi Bottling Group, Inc. of purported annual synergies of $750 million to $850 million.

According to PepsiCo, Pepsi Bottling said previously that a combination of Pepsi Bottling and PepsiAmericas, Inc. would generate synergies well below $100 million.

As previously reported, Pepsi Bottling rejected PepsiCo's May 4 offer to acquire the company for $14.75 in cash plus 0.283 shares of PepsiCo common stock, for a total value of $29.50 per share.

Also as part of its bid to consolidate, PepsiCo offered to acquire PepsiAmericas for $11.64 in cash plus 0.223 shares of PepsiCo common stock, or $23.27 per share.

PepsiCo, a Purchase, N.Y., food and beverage company, has reiterated its belief that the offers are "full and fair" and in the best interests of PepsiAmericas, Pepsi Bottling and their respective shareholders.

Pepsi Bottling, based in Somers, N.Y., is the world's largest manufacturer, seller and distributor of Pepsi-Cola beverages.

Minneapolis-based PepsiAmericas is the world's second-largest manufacturer, seller and distributor of PepsiCo beverages.

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