Davis Polk & Wardwell has advised PepsiCo for several years, particularly in relation to corporate and tax matters. It also advised Pepsico on the $2.3bn (£1.6bn) initial public offering of its bottle business last year.

The firm acted for Pepsico when it signed a binding agreement to merge with Quaker Oats in December. This offering will ensure favourable accounting treatment when the merger takes place. PepsiCo wants to account for the acquisition as a pooling of interests accounting treatment, which means that the two companies are merged without changing the value of the assets. But in order to do this, PepsiCo must comply with complex accounting rules.

The size of the offering in the current conditions is unusual and it says a lot about the market perception of PepsiCo.