The ongoing saga of the sale of Quaker Oats took a new twist yesterday as PepsiCo re-entered negotiations with the breakfast cereal and sports drink manufacturer.

Pepsi has renewed its all-stock offer of 2.3 shares for each Quaker share – a valuation of $13.7 billion at current market prices – an offer Quaker rejected a month ago.

Since then, Coca-Cola pulled out of talks after its board vetoed the deal [WAMN: 22-Nov-00] and French food and drink company Danone was forced to abandon negotiations when its share price plummeted following news of its interest in Quaker.

As befits such a tortuous epic, the deal is far from over. Pepsi is understood to be contemplating a clause allowing Quaker to abandon the deal should Pepsi’s stock price fall too far. Negotiations continue this weekend.

News source: Financial Times