PepsiCo's Bid for Quaker Oats (C)

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.

Supplement

Reference no. 9-209-070

Subject category: Finance, Accounting and Control

Authors: Carliss Y Baldwin (Harvard Business School)

Published by: Harvard Business Publishing

Originally published in: 2011

Version: 16 September 2011

Revision date: 17-May-2019

Length: 8 pages

Data source: Published sources

Topics: Auctions; Bids; Brands; Mergers & acquisitions; Negotiation; Stock exchanges; Supervisory boards; Valuation

Share a link: https://casecent.re/p/85210

| No reviews for this item

This product has not been used yet

View our pricing guide or login to see prices.

Abstract

Third in a series of PepsiCo's bid for Quaker Oats. Describes the auction for Quaker Oats including terms of the bids. After winning the auction, Coke's stock price fell dramatically. Coke's Board then refused to approve the deal and withdrew. Quaker then approached Pepsi, the losing bidder, and asked them to submit another bid. The case can be used to teach the mechanics of collared consideration, announcement effects, the prerogatives of a board of directors, and negotiating strategy.

Location:

United States

Industry:

Food

Size:

USD20 billion, 100,000 employees

Other setting(s):

2000