Boston, MA 06/25/2014 (wallstreetpr) – The Coca-Cola Company (NYSE:KO) is the global beverage giant that you have known for more than 100 years. Coca-Cola acquires interesting assets and enters deals to boost its performance especially when rivals such as PepsiCo Inc (NYSE:PEP) are merciless in its once dominant markets like India.
However, rumors have it that the maker of Fanta could find a suitor to take it private. Nonetheless, the mention of a Coca-Cola buyout begs the questions of “Who” and “How?” According a shareholder in the beverage company, Billionaire Warren Buffet’s Berkshire Hathaway Inc. (NYSE:BRK.A) and 3G Capital could be plotting something unheard of in the corporate world – a $200 billion buyout of Coke.
With almost $184 billion in market cap, Coca-Cola Company (NYSE:KO) could ask for about $200 billion for a buyer seeking to take it private. As remote as that might sound, it is not far from the thoughts of investor David Winters, who manages a fund with $105 million investment in the Sprite maker.
Winters claims that Mr. Buffet and 3G could join forces as they have done in recent times, to buy Coca-Cola Company (NYSE:KO). When Berkshire Hathaway and 3G teamed up to purchase Heinz for $23 billion last year, the two firms announced a long-term partnership that would see them pull together resources to make acquisitions of size, especially in the food industry where they have collaborated previously.
Buffet, who is the largest shareholder in Coca-Cola with more than 9 percent stake in the company, has reportedly denied the claims that he is pursuing the company for a buyout. It is believed that the nearly $200 billion buyout price of Coca-Cola is quite expensive. But even as Buffet denies the claims, Winters believes that the partnership of 3G and Berkshire Hathaway is suspect for a mind boggling deal, which although may not happen soon, is not far from the surface.
PepsiCo is a thorn
As buyout rumors make the around, Coca-Cola Company (NYSE:KO) is not sitting well in many of its key markets such as India where rival PepsiCo has opened an all-out market war. In addition to trying to lock Coca-Cola from exclusive marketing opportunities especially in sporting stadiums in the emerging markets, PepsiCo is also taking Coca-Cola neck to neck with new product launches.