Supplement | HBS Case Collection | October 2008 (Revised September 2011)

PepsiCo's Bid for Quaker Oats (B)

by Carliss Y. Baldwin and Leonid Soudakov

Abstract

Second in a series on PepsiCo's bid for Quaker Oats. Describes the negotiations between PepsiCo and Quaker including due-diligence process, first bid, and counteroffer. Quaker's counteroffer included a collar on equity consideration, and thus the case offers an opportunity to discuss and value these contractual devices.

Keywords: Mergers and Acquisitions; Equity; Bids and Bidding; Negotiation Offer; Negotiation Preparation; Valuation; Food and Beverage Industry;

Citation:

Baldwin, Carliss Y., and Leonid Soudakov. "PepsiCo's Bid for Quaker Oats (B)." Harvard Business School Supplement 209-078, October 2008. (Revised September 2011.)