Coca-Cola prepares offer for Quaker

Article Abstract:

Coca-Cola is expected to win a bidding war for Quaker Oats Co. The softdrink maker's board is scheduled to meet on Nov 21, 2000, to discuss a takeover offer that would exceed the $14 billion deal that Quaker rejected from PepsiCo earlier in November. The bid is designed to stop Pepsi from securing Quaker's coveted Gatorade sports-drink brand which posted sales of $1.8 billion in 1999, up from $100 million in 1984 when Quaker bought it. Quaker Oats shares are expected to rise higher in trading on Nov 20 on expectations that Coca-Cola will win in its purchase bid.

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Pepsi in talks to gobble up Quaker Oats

Article Abstract:

Pepsi-Cola is reportedly negotiating the acquisition of Quaker Oats for as much as $13 billion in stock. The soft-drinks giant is supposed to be offering two of its shares for every share of Quaker Oats, which puts the latter's value to almost $100 per share. The purchase of Quaker Oats would allow Pepsi to gain control of Gatorade, which has an 86% share of the sports drink market. News of the buyout caused Pepsi's share to decline by 88 cents to $47.13 while Quaker remained unchanged at $82.25 at end of trading on Nov 2, 2000.

Illinois, Soft drinks

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Quaker accepts Pepsi's $13.4B bid

Article Abstract:

PepsiCo is acquiring Quaker Oats for $13.4 billion in stock. The transaction is subject to regulatory approval but is expected to close in the first half of 2001. The deal involves trading 2.3 cshares of Pepsi for each share of Quaker. Gatorade, which Quaker Oats owns, remains the most important part of the portfolio that is being added into the Pepsi corporation. The powerhouse brand generates $2.1 billion in sales with a three-year historical growth rate of 12% in sales and 15% in profits.

Quaker Oats Inc.

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