FTC Moving Against Pepsi-Quaker Deal
Attorneys at the Federal Trade Commission have recommended going to court to block PepsiCo Inc.’s bid to buy Quaker Oats Co., maker of Gatorade sports drink, a source close to the case said. PepsiCo Chief Executive Steve Reinemund said the company is “very optimistic†about the deal, but he declined to provide additional details about the pending merger.
“We’ve been in talks with the FTC,†PepsiCo spokesman Dick Detwiler said. “We have not been commenting on the details of those discussions. We don’t know of any legitimate reason why the deal should be blocked.â€
Shareholders of both companies and antitrust authorities outside the United States have already approved the merger.
PepsiCo also reported a 16% rise in second-quarter profit to $652 million, or 44 cents a share, beating analysts’ forecasts by 2 cents, in part because of new product introductions. Sales rose 7% to $5.28 billion.
On the New York Stock Exchange, PepsiCo fell 52 cents to close at $46.47, while Chicago-based Quaker fell 82 cents to $86.97.
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