said Monday it has rejected as "grossly inadequate" a proposal by
to acquire the bottler.
PepsiCo, which currently owns 33% of Pepsi Bottling, in April offered $29.50 a share for the remaining stake that it doesn't already own. It initially spun off Pepsi Bottling in 1999.
The $6 billion proposal for Pepsi Bottling and
would have let PepsiCo control about 80% of its total North American beverage volume.
Shares of Pepsi Bottling closed Friday at $31.41.
In a letter to PepsiCo, Pepsi Bottling said the value of the proposal is "substantially below PBG's intrinsic value," and is at "virtually no premium to market" given Pepsi Bottling's first-quarter earnings and the company's upward revision to full-year per-share earnings and operating free cash flow guidance.
Pepsi Bottling said it values its relationship with PepsiCo, but its board won't agree to a proposal that doesn't reflect the "true value" of the company.
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