PepsiCo to buy stake in food, food Russian giant WBD: food and beverage maker PepsiCo (PEP - news - people) on Thursday announced it would acquire a 66% stake in Russian food giant Wimm-Bill law-Dann Foods OJSC (WBD - news - people) for approximately $ 3.8 billion. Agreement, subject to Government approval, is $ 33 per share ADR, almost a 35% premium to WBD $24.50 Wednesday closing price.
Once the transaction is complete, PepsiCo will then offer to acquire remaining shares of WBD, in accordance with Russian law. Wimm-Bill law-Dann produces dairy products, juices, and foods for babies under several brands in Eastern Europe.
PepsiCo shares were mostly flat in Premarket trade Thursday.
The bottom line
We have been recommending the shares of Pepsico since July 30, 2009, when the stock was trading at $56.93. Society has 2.93% dividend, based on last night during closing of $65.63.
PepsiCo is a "recommended" dividend stock, holds a Dividend.com DARS Rating of 3.5 to 5 stars.
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