Pepsi battles bottlers over ‘poison pill’ allegations
PepsiCo’s failed attempt to acquire outstanding shares in two of its bottling groups could be heading to court after it filed suit against one of the parties it alleges kept some of its affiliated directors in the dark at recent board meetings.
In a suit filed in Delaware against the Pepsi Bottling Group (PBG), the drink and snack maker claims that board meetings were held to adopt ‘poison pill’ measures that implemented new bylaws to reduce its rights as a shareholder.
“PepsiCo further alleges that PBG and its board breached their fiduciary duties to PBG shareholders by adopting the poison pill because it restricts PepsiCo's rights as a PBG shareholder and constitutes an unreasonable and disproportionate response to PepsiCo's constructive proposal,” says the group.
Last month, PepsiCo tendered an offer to acquire the outstanding shares of the PBG and PepsiAmericas in a deal reportedly worth $6bn (€4.5bn). The offer has since been rejected.
