Quaker rebuffs PepsiCo acquisition bid

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Quaker Oats Co. reportedly rejected a $13.7 billion acquisition bid by PepsiCo late Nov. 2, citing the all-stock offer as too low. It's unlikely that Pepsi would rebid for Quaker, whose Gatorade brand Pepsi covets, without bringing in a third party interested in Quaker's less than stellar food business, said Skip Carpenter, analyst at Credit Suisse First Boston. Although analysts mention Nestle and Coca-Cola Co. as potential bidders, most food companies able to pay the $95 to $100 per share Quaker demands are busy with already pending acquisitions. Among agreements still in the approval stage are Kraft Foods' buy of Nabisco, General Mills' purchase of Pillsbury Co. and Kellogg Co.'s Keebler Foods acquisition.

Copyright November 2000, Crain Communications Inc.

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