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

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

KeurigGreenMountainNewPromoKO 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.

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