Research Notes

Lebedyansky: generous offer from PepsiCo

16.10.08

The decline in quotations for Lebedyansky shares on MICEX over the past two weeks has widened the discount on the current market price of the shares, as compared to their obligatory buyout price, to 18%.The likelihood that the buyout offer will be presented is high, given the statements made by company representatives on the day prior to the release of this analytical note. In our view, a discount on this scale is unnaturally high; making the acquisition of Lebedyansky shares an attractive buy in view of the negative performances of stock indices. Despite the recent attempts of some companies on the market to renege on their obligations to abide by the terms of an obligatory buyout offer, the likelihood that this offer will not go ahead is low. Otherwise, the reputation of PepsiCo, the dominant player on the world soft beverage market, could be put at risk.

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Sectors:  Consumer, Food
Company:  Lebedyansky

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