Page last updated at 05:54 GMT, Monday, 20 April 2009 06:54 UK

PepsiCo offers $6bn for bottlers

A Pepsi worker
PepsiCo said the planned move will improve competitiveness

PepsiCo, the world's second-largest soft drinks manufacturer, is proposing to spend $6bn (£4bn) to take sole control of its two largest bottlers.

It said it was offering $29.50 per share in Pepsi Bottling Group, and $23.27 per share in Pepsi Americas.

PepsiCo currently only has minority stakes in both businesses.

If the deal is backed by shareholders at the two bottling firms, New York-based PepsiCo said it would boost its annual earnings by at least 15%.

'Improve competitiveness'

The price PepsiCo is offering for the stock in the two firms represents a 17% premium on their Friday closing share prices.

"We believe that by reshaping our business model we can significantly improve our competitiveness and our growth prospects," said PepsiCo chairman and chief executive Indra Nooyi.

PepsiCo currently owns 33% of Pepsi Bottling Group, and 43% of Pepsi Americas.

Last October, PepsiCo said it was cutting 3,300 jobs in the US to cut costs.

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