Hong Kong Herald - Mar 15, 2010PepsiCo, Inc. (PEP)
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Jack Russo
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Edward JonesThe company suspended share buybacks in 2009 to conserve cash for the purchase of its two largest bottlers, Chief Financial Officer Richard Goodman said on a Feb. 11 conference call. The $7.8 billion acquisition, completed , gives
PepsiCo control of about 80 percent of its North American beverage market and will provide about $400 million annually in savings by 2012, the company said at the time.
"Both the increased dividend and buyback signal management's confidence in the future," Jack Russo, an analyst at Edward Jones & Co in St. Louis who recommends buying the shares, said in an e mail. "They obviously feel good about the potential cost savings associated with the bottler deals.".
Share:
The company suspended share buybacks in 2009 to conserve cash for the purchase of its two largest bottlers, Chief Financial Officer Richard Goodman said on a Feb. 11 conference call. The $7.8 billion acquisition, completed , gives <span class="company">PepsiCo</span> control of about 80 percent of its North American beverage market and will provide about $400 million annually in savings by 2012, the company said at the time.<span class="sent"> "Both the increased dividend and buyback signal management's confidence in the future," <span class="analyst">Jack Russo</span>, an analyst at Edward Jones & Co in St. Louis who recommends buying the shares, said in an e mail.</span> "They obviously feel good about the potential cost savings associated with the bottler deals.".
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