UPDATE 5-PepsiCo threatens to walk from bottler bid

* PepsiCo signals it could abandon takeover

* PepsiCo affirms $200 mln savings, dismisses PBG estimate

* PBG ups Q2 EPS view to 70-74 cts from 65-69 cts

* Sees '09 EPS $2.30-$2.40; prior view was $2.20-$2.30

* Pepsi Bottling shares fall 3.2 pct after-hours (Recasts with PepsiCo response)

By Martinne Geller

NEW YORK, June 2 (Reuters) - PepsiCo Inc (PEP.N) hinted it could walk away from its proposed takeover of Pepsi Bottling Group Inc (PBG.N), even as the bottler tried to make its case for a higher bid.

Pepsi Bottling, which also on Tuesday raised its earnings forecast for the current quarter and full year, laid out several reasons why PepsiCo's bid is too low, especially since Pepsi Bottling's performance is improving as cash-strapped consumers buy cheaper drinks, and costs for raw materials like aluminum, fuel and corn fall.

For the first time since April when it launched a $6 billion unsolicited takeover bid for its two largest bottlers, Pepsi Bottling and PepsiAmericas Inc (PAS.N), the soft drink and snack maker signaled that it might back away and that Pepsi Bottling could remain independent.