Friday, June 8, 2007

Decision on PepsiCo's stake dilution deferred

The Foreign Investment Promotion Board (FIPB) today deferred a decision on beverages firm PepsiCo's application seeking exemption from regulations to divest 49% stake in its bottling arms to Indian shareholders.

PepsiCo India had asked the government to waive the condition that recquires it to reduce its stake in bottling subsidiaries to 51% within five years.

As per the regulations, the global soft drinks major has to reduce its equity this year in Kools Drinks Beverages, which it acquired in 2002.

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