ANTHONY CLARK: Who knew what, and when?
Questions can be asked about PepsiCo’s offer for Pioneer Foods, but there has been no investigation
One of the largest inbound SA transactions in recent memory occurred in Paarl in the Western Cape in mid-July. That was when, after a tortuous two years of weak earnings and slumping share price, SA’s second-largest foods business, Pioneer Foods, issued a cautionary stating it had entered into negotiations that might have an effect on its share price.Pioneer Foods had until then been on a share price slide, The stock started 2019 at R85.00, but weak consumer demand hit margins and earnings. This led to a 14% decline in interim earnings to March 2019, and Pioneer slid to a low of R69.00 in early July.The cautionary — as well as leaks relating to a sudden spike of interest on July 18 and from news reports — suggested something big was occurring.On July 19 it was announced, in a bold and detailed 23-page Sens announcement, that the world’s second-largest beverage business, PepsiCo — the US-listed producer of Pepsi-Cola, Mountain Dew, Gatorade, Quaker Oats, Lay’s and Doritos — had a fir...
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