While either PepsiCo or rival Coca-Cola Co. could use its marketing muscle to boost sales of Gatorade, some analysts identified Nestle SA as a more likely buyer because of its interest in Quaker's foods. Quaker's other products range from oatmeal to Cap'n Crunch cereal to Aunt Jemima syrup.
"Quaker Oats has one of the all-time great businesses in Gatorade," said Tom Russo of Gardner Russo Gardner Investments, which holds Quaker Oats shares.
PepsiCo, the second-biggest soft-drinks company, offered to exchange 2.2 shares for each Quaker share, the Wall Street Journal reported, citing unnamed people. That valued Quaker at $103.53 a share, 26 percent more than yesterday's close. Quaker rejected the bid as too low, and talks ended, the paper said.
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