First, you will have about 2.2 times your OAT stock in PEP. Second, OAT share price (as already evidenced) will rise during the hubbub, while PEP shares decrease. Eventually a happy median is found where 2.2 times the PEP price is about where the OAT share price is. When all is said and done, more than likely you will have both OAT and PEP.

Personally, though I am a KO stockholder as custodian for my daughter, and OAT stockholder as custodian for my other daughter, I wouldn't mind if OAT was bought out. PEP has an investor friendly DRP while OAT charges I think $.75 to reinvest dividends. Only problem I would foresee is that I'd have to buy Coke and Pepsi at my house.

Also, if either KO or PEP was to buy OAT, they would more than likely keep the beverage division while selling the cereal and food portions. Only time will tell, but I would prefer KO do the buying for the Gatorade brand and then have both daughters in KO stock. (FYI one is 11 and one is 9).

GBAK

Shaggy