GMCR, KO: Green Mountain Stock Pops on Increased Coke Stake

by Christopher Freeburn | May 13, 2014 10:31 am

Soft drink and snack giant Coca-Cola (KO[1]) has boosted its stake[2] in Keurig Green Mountain (GMCR[3]). GMCR stock jumped almost 10% in Tuesday morning trading on the news.

KeurigGreenMountainNewPromo[4]KO purchased a 16.7 million GMCR shares for $1.25 billion back in February, about a 10% stake in the company. It has now boosted that stake to 16% and now controls 26 million GMCR shares, Bloomberg notes.

The investment has raised speculation that GMCR could be a takeover target for KO, which is looking to diversify its business as soft drink sales decline.

GMCR and KO are collaborating to develop a single-cup brewer dubbed Keurig Cold, expected to reach consumers later this year.

On Monday, GMCR stock closed at $110.71 per share. KO stock climbed almost 1% in Tuesday morning trading.

More Green Mountain Keurig News:

 

Endnotes:

  1. KO: http://studio-5.financialcontent.com/investplace/quote?Symbol=KO
  2. has boosted its stake: http://www.bloomberg.com/news/2014-05-13/coca-cola-increases-holding-in-keurig-green-mountain-to-16-.html
  3. GMCR: http://studio-5.financialcontent.com/investplace/quote?Symbol=GMCR
  4. [Image]: https://investorplace.com/wp-content/uploads/2014/03/KeurigGreenMountainNewPromo.jpg
  5. GMCR: Keurig Green Mountain Climbs Higher on Earnings News: https://investorplace.com/2014/05/gmcr-keurig-green-mountain-earnings/
  6. GMCR Stock: Why Now’s a Good Time to Own: https://investorplace.com/2014/03/gmcr-stock-sbux/2/
  7. GMCR: Keurig Green Mountain to Join S&P 500: https://investorplace.com/2014/03/gmcr-keurig-green-mountain-join-sp-500/

Source URL: https://investorplace.com/2014/05/gmcr-ko-green-mountain-stock-pops-increased-coke-stake/

Copyright ©2024 InvestorPlace unless otherwise noted.