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Filed under: PepsiCo (PEP), JPMorgan Chase (JPM), Options

PepsiCo (NYSE: PEP) closed at $59.03. PEP is scheduled to report Q3 EPS on October 8. PEP expects to close on the acquisition of Pepsi Americas (NYSE: PAS) and Pepsi Bottling Group (NYSE: PBG) in early 2010. PEP October and January option implied volatility of 24 is near its 26-week average of 26, according to Track Data, suggesting non-directional price movement.

Filed under: PepsiCo (PEP), Options

PepsiAmericas (NYSE: PAS) accepted Pepsi (NYSE: PEP) offer of $28.50 in cash or 0.5022 shares PEP. PAS September option implied volatility of 20 is below its six-month average of 33, according to Track Data, suggesting decreasing price movement.

Pepsi Bottling Group (NYSE: PBG) accepted PEP offer of $36.50 per share in cash or 0.6432 in shares of PEP. PBG September option implied volatility of 13 is low according to Track Data, suggesting decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Filed under: Competitive strategy, PepsiCo (PEP)

After some wrangling, PepsiCo (NYSE: PEP) has agreed to pull the trigger on the acquisitions of Pepsi Bottling Group (NYSE: PBG) and PepsiAmericas (NYSE: PAS). In all, the deals come to roughly $7.8 billion (half in stock and half in cash).

On the news of these transactions, the share prices of both Pepsi Bottling Group and PepsiAmericas have spiked 7%. Keep in mind that -- back in April -- Pepsi made a play for these companies, but at a total price tag of $6 billion or so.

Continue reading Pepsi drinks up two bottling deals

• PepsiCo (NYSE: PEP) confirmed it has entered into definitive merger agreements with The Pepsi Bottling Group, Inc. (NYSE: PBG) and PepsiAmericas, Inc. (NYSE: PAS) under which PepsiCo will acquire all of the outstanding shares of common stock it does not already own in its two largest anchor bottlers. Under the agreements, PBG shareholders will have the option to elect either $36.50 in cash or 0.6432 shares of PepsiCo common stock (which had a value of $36.50 based on PepsiCo closing share price of $56.75 on July 31, 2009) for each share of PBG, subject to proration such that the aggregate