PepsiCo files suit against PBG and its board
PURCHASE, N.Y. PepsiCo announced Monday that it has filed suit in Delaware against the Pepsi Bottling Group and its directors.
The suit alleges that the defendants intentionally failed to provide notice of a recent PBG Board meeting to the PBG directors affiliated with PepsiCo. At that meeting, the directors in attendance claim to have adopted a “poison pill,” implemented certain new executive compensation arrangements and purported to amend the PBG bylaws in ways PepsiCo believes are detrimental to its rights as a shareholder. Because of the lack of notice and consideration by the full Board, PepsiCo alleges those actions by the board at the meeting are invalid.
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. The suit seeks declaratory and injunctive relief.
On April 19, 2009, PepsiCo made a proposal to acquire all of the outstanding shares of common stock that it does not already own in its two largest anchor bottlers, PBG and PepsiAmericas, at a value of $29.50 per share for PBG and $23.27 per share for PAS. PepsiCo currently owns 33% of the outstanding shares of PBG and 43% of the outstanding shares of PAS.
On May 4, 2009, PBG announced that its Board had rejected PepsiCo’s proposal. In addition, PBG also announced that its Board had approved adoption of a shareholder rights plan, commonly referred to as a “poison pill,” as well as retention arrangements for certain key employees and amendments to PBG’s bylaws regarding notice and informational requirements for shareholder actions.
PepsiCo reiterates its belief that its offers are full and fair and in the best interests of PBG, PAS and their respective shareholders.
Partnership rolls out ‘the definitive ginger beer soft drink’
BOSTON A rum manufacturer and a beer maker have joined forces to package and distribute what the companies are calling “the definitive ginger beer soft drink.”
Gosling’s Stormy Ginger Beer, made with Gosling’s Rum of Bermuda and beer from Mass.-based Polar Beverages, is available in 12-ounce cans and will distributed .
“We needed to hit the perfect balance between sweetness and spiciness,” explained Malcolm Gosling, president of Gosling’s Export (Bermuda) Ltd. “Our objective was to create a ginger beer that, when paired with our award winning Black Seal Rum, would produce the absolute perfect Dark ‘n Stormy.”
The Dark ‘n Stormy, a drink of ginger beer and Black Seal Rum, is Bermuda’s official national cocktail.
Hy-Vee, Price Chopper to stock Eating Right line
SCHENECTADY, N.Y. Two supermarket chains have unveiled a line of health-and-wellness foods tailored to consumers’ health needs.
West Des Moines, Iowa-based Hy-Vee and Schenectady, N.Y.-based Price Chopper announced Thursday that they had begun stocking the Eating Right line of foods, which include frozen entrees and breakfast foods.
The brand includes foods tailored to dietary needs such as heart health, digestive health, bone health, immunity and weight management. One feature is the “Spot Your Needs” system, designed to simplify the process of finding foods suitable to consumers.
“With healthier eating a priority for many of our customers, we are pleased to bring new options to our shelves with the introduction of the Eating Right brand at Price Chopper stores,” Price Chopper senior corporate nutritionist Ellie Wilson stated. “Our shoppers rely on us to meet all of their varied needs, and with Eating Right, we’re able to offer a great selection of products designed to help our customers pursue their specific health goals.”