The Reagan Administration has rarely thwarted a major corporate merger. Thus it came as a surprise last week when the Federal Trade Commission said it would sue to stop PepsiCo from buying Seven-Up, and Coca-Cola from swallowing Dr Pepper. Pepsi's bid to merge the No. 2 and No. 3 U.S. soft-drink brands was announced in January, and industry leader Coke agreed to buy the No. 4 brand a month later.
If the deals go through, Coke and Pepsi will account for 80% of the market. Both companies voiced little reaction to the FTC move. Said a Coke spokesman: "We believe our...
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