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Quaker Oats went down today to $91.4. Does anyone have any idea what's going on? I haven't kept up with how the talks with the FTC are going.
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Quaker Oats dropped further to $88.95. The deal between Pepsi and Quaker Oats was a stock exchange of 2.3 PEP shares for each OAT share. Further, certain limits have been set where if the OAT share falls below $92, the deal can be called off (based on rough memory...).

With the first factor, based on the price as of the second I am writing this, where OAT is 89.85, and PEP is $43.74, there seems to be a very wide spread which would seem to make some Risk Arbitrage an attractive option right now. With the second factor, you could argue that $92 is a floor for what OAT shares should sell for (meaning the present price is a bargain), or you could argue that the deal is in some trouble.

But anyway, I am suddenly very curious as to how the talks with the FTC are going. Does anyone know how the talks are going with them? I would be especially interested in finding out if any hearings would be open door, and how I could get information on them. Admittedly the few news releases made by Pepsico are sparce, perhaps out of date, and not very useful.
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This is dated the 8th of June, but I saw it referenced in a news item yesterday. It might explain some of the movement, though there was no corresponding movment on PEP stock price.

There may also be some skittishness, due to the EU's treatment of the GE-Honeywell deal.

PepsiCo Expects Quaker Merger Talks With FTC to Continue Beyond June


PURCHASE, N.Y., Jun 8, 2001 /PRNewswire via COMTEX/ -- PepsiCo (NYSE: PEP) announced today that it is continuing discussions with the Federal Trade Commission on its planned merger with the Quaker Oats Company and that it expects those discussions to go into the third quarter.

"We have said all along it is in everyone's best interest to let the government investigate fully, and sometimes that process can take longer than anticipated," said Steven S Reinemund, PepsiCo's Chairman and CEO.

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