Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  The Coca-Cola Co    KO

Delayed Quote. Delayed  - 07/28 10:02:34 pm
43.65 USD   +0.58%
04:55aDJFacebook May Owe Billions More in Taxes
07/28 COCA COLA : Orlando Eye officially flies Coca-Cola banner
07/28 REPORT : How to get ahead of beverage trends to increase profits
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Coke says not in talks to buy Monster Beverage

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/01/2012 | 01:56am CEST

Coca-Cola Co took the unusual step of shooting down a report on Monday that said it was in talks to buy energy drink maker Monster Beverage Corp, valued at more than $11 billion.

The statement from the world's largest soft drink maker came in response to a story in the Wall Street Journal that said Coke was in discussions to buy the fast growing energy drink maker, whose brands include Monster Energy and Java Monster.

Coke and Monster had discussed a possible deal as recently as last year, according to two sources familiar with the matter. However, it is unclear whether the two have been in talks since then.

The Journal's report that the two companies were in current talks, posted on its website Monday, sent Monster's stock up 28 percent to $83.96, an all-time high. Coke later issued a statement disputing the report, and Monster stock fell, closing down 1 percent.

"At this time, we are not in discussions to acquire the Monster Beverage Corp," Coke said in its statement. "We continue to review the best ways to maximize the value of our relationship."

Should it happen, an acquisition would give Coke a bigger footprint in the energy drink market, which is growing faster than traditional soft drinks. Coke's own energy drink, Full Throttle, is small compared with Monster and rivals Red Bull and Rockstar.

"We think Monster is an attractive takeout candidate given it is the fastest-growing brand in one of the fastest-growing global beverage categories," said Stifel Nicolaus analyst Mark Astrachan.

UBS analyst Kaumil Gajrawala estimated a fair takeout offer for Monster would range from $84 to $100 per share. Based on the number of shares outstanding as of February 24, that multiple implies a deal value ranging from $14.6 billion to $17.4 billion.

Coke already distributes a large portion of Monster's drinks in the United States and in some international markets. Monster has a similar distribution deal with Anheuser-Busch InBev.

In its statement, Coke said the two companies were looking at ways to wring more profit out of their existing relationship. That could include placing Monster in more retail locations, doing additional co-marketing with other Coke brands, or working together to market new products, according to Ken Harris, chief executive of Kantar Retail Americas Consulting.

However, the dueling statements on a possible acquisition left some doubt about whether a deal might be in the works.

Following Coke's denial of acquisition talks, the Wall Street Journal updated its story to say the companies had been in talks recently and that Coke pulled out after the Journal report was published.

A Coke spokesman denied that claim.

A Monster spokeswoman said the company does not comment on market speculation.

INTERNATIONAL OPPORTUNITY

Monster Beverage, earlier known as Hansen Natural, was taken public by current CEO Rodney Sacks in 1992. Sacks, now in his 60s, still has a 7.3 percent stake in the company, according to Thomson Reuters data.

Speculation about whether Coca-Cola would buy Monster has surfaced in the past due to Monster's growth, the companies' distribution relationship, and the fact that Coke does not have a very strong-selling energy drink.

Last year, Monster's sales rose by nearly a third to $1.70 billion. Sales are seen rising a further 21 percent this year.

For Monster, getting bought by Coca-Cola would greatly expand its presence, since it would have access to Coke's sizable international distribution system. For Coke, buying Monster would give it the full profit stream from the product.

Analysts have said buying Monster would give Coke a good brand in North America, where sales of traditional soft drinks have been weak, as well as a good product to sell overseas.

Monster's shares nearly doubled over the past year. As of Friday's close, the company's market capitalization was about $11.4 billion based on the latest number of share outstanding.

Monster shares closed down 0.8 percent at $65. Coke shares closed down 0.4 percent at $76.32 on the New York Stock Exchange.

(Reporting by Martinne Geller, Michael Erman and Soyoung Kim in New York and Mihir Dalal in Bangalore; Editing by Alwyn Scott, Phil Berlowitz, Bob Burgdorfer and Bernard Orr)

By Martinne Geller and Michael Erman

Stocks treated in this article : AB INBEV, BEAM Inc, The Coca-Cola Company, Monster Beverage Corp
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on THE COCA-COLA CO
04:55aDJFacebook May Owe Billions More in Taxes
07/28 COCA COLA : Orlando Eye officially flies Coca-Cola banner
07/28 COCA COLA : Management's Discussion and Analysis of Financial Condition and Resu..
07/28 REPORT : How to get ahead of beverage trends to increase profits
07/28DJMARKET SNAPSHOT : U.S. Stock Futures Slip On Disappointing Earnings, Mixed Econo..
07/28DJMARKET SNAPSHOT : U.S. Stock Futures Fall On Disappointing Earnings, Mixed Econo..
07/28 COCA COLA : Lure of cash at Craven Week disturbing
07/28DJCOCA COLA : Coke Cuts Revenue Outlook -- WSJ
07/27DJMARKET SNAPSHOT : Stocks Turn Lower As Fed Statement Looms
07/27DJCOCA COLA : Coke's Revenue Slides as Soda Volume Declines--2nd Update
More news
Sector news : Non-Alcoholic Beverages - NEC
07/27DJDr Pepper Raises Full-Year Guidance as Water Sales Continue to Climb
07/27DJCoke's Revenue Slides as Soda Volume Declines
07/08DJPEPSICO : Raises Annual Outlook -- WSJ
07/07DJPEPSICO : Pepsi, Buoyed by Domestic Growth, Boosts Its Outlook -- 2nd Update
07/07DJPEPSICO : Pepsi, Buoyed by Domestic Growth, Boosts Its Outlook -- 2nd Update
More sector news : Non-Alcoholic Beverages - NEC
News from SeekingAlpha
04:14a If You Are A Buy And Hold Investor, Coca-Cola Is Available Now
07/28 Apple Tops Dogs Of The Dow July Analysis
07/28 2 Avoids And 1 Potential Buy
07/28 Earnings Bonanza Continues, With Internet, Energy Firms In The Spotlight
07/28 WALL STREET BREAKFAST : Crude Nears Fresh Bear Market
Advertisement
Financials ($)
Sales 2016 41 700 M
EBIT 2016 9 967 M
Net income 2016 8 183 M
Debt 2016 27 982 M
Yield 2016 3,18%
P/E ratio 2016 22,92
P/E ratio 2017 21,96
EV / Sales 2016 5,20x
EV / Sales 2017 6,03x
Capitalization 188 839 M
More Financials
Chart THE COCA-COLA CO
Duration : Period :
The Coca-Cola Co Technical Analysis Chart | KO | US1912161007 | 4-Traders
Full-screen chart
Technical analysis trends THE COCA-COLA CO
Short TermMid-TermLong Term
TrendsBearishNeutralBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 23
Average target price 47,9 $
Spread / Average Target 9,7%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Ahmet Muhtar Kent Chairman & Chief Executive Officer
James Quincey President & Chief Operating Officer
Kathy N. Waller Chief Financial Officer & Executive Vice President
Eddie R. Hays Chief Technical Officer & Senior Vice President
Edmund R. Steinike Chief Information Officer & Senior Vice President
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
THE COCA-COLA CO1.61%188 839
DR PEPPER SNAPPLE GROU..5.01%18 146
SUNTORY BEVERAGE & FOO..-16.10%13 286
ARCA CONTINENTAL SAB D..17.11%10 695
COCA COLA HBC AG8.84%7 537
COCA-COLA AMATIL LTD-2.80%5 260
More Results