Coke, the world's biggest soft drinks maker, said it would not revise its current offer, ending a two-and-a-half-year struggle to claim Orangina's niche share of the beverage market in France.

Coke had amended its original offer to buy Orangina, afizzy drink popular in French cafes, restaurants and hotels, but French authorities said the changes did not assuage fears the deal would lead to the establishment of a monopoly.

"We've made an application twice and it's been rejected twice, and this is a final decision. That's how we see it," said Coke spokesman Rob Baskin, who dismissed suggestions the setback would impact the company's ambitious growth strategy.

The French decision to block the takeover of Orangina was the latest blow in a bitter fight between Coke and its main rival PepsiCoInc. to carve out precious markets around the world.

Europe is considered a key battleground by both companies. New York-based PepsiCo, originally tapped by Pernod Ricardas the ideal candidate to buy Orangina, refused to comment on whether it would launch a bid for the French brand.

PepsiCo, which holds a smaller share of the French market than Coke and had voiced fears it would be squeezed out of the market, praised the decision as a victory for consumers and fair pricing.While PepsiCo expressed delight at the news from France, Pernod-Ricard reacted with disgust. Pernod-Ricard director general Thierry Jacquillat issued a statement saying the decision blocked Orangina's "legitimate ambitions" in the global market.Investors also moved fast to dump Pernod shares, which ended the day down 4.6 percent at 58.20 euros on the Paris bourse.

Coke's failed Orangina bid arrived at an inopportune time for the company, just as investors' memories of a recent recall in Belgium and France were beginning tofade.

Coke was forced to issue its largest recall ever last summer - 17 million unit cases were pulled - due to contamination from a bad batch of carbon dioxide in Belgium and a foul odour from a chemical substance used on storage pallets at a cannery in France.

REUTER