Pepsi Bottling Mexico Unit Heading South

Pepsi Bottling Group (PBG: NYSE) By Credit Suisse ($19.58, Nov. 19, 2008)

[WE REMAIN NEUTRAL ON PEPSI BOTTLING GROUP (TICKER: PBG).]

Pepsi Bottling Group finally recognized that its Mexican asset was not worth what it paid in 2005.

A $412 million pretax impairment charge seems to finally bring the business in line with what it is probably worth, roughly $800 million. While the reduction of 700 routes (out of estimated 6,000), closure of 30 distribution centers (of estimated 74), closure of four plants, etc, makes for a rapid release of ...