Coca-Cola rumored to buy Monster
The beverage giant may be on the verge of its largest acquisition ever.
According to several analysts Benzinga spoke to Thursday, Coca-Cola (KO) could have its sights set on Monster Beverage (MNST) in an acquisition that may be the beverage giant's largest ever.
Jack Russo of Raymond James thinks Coke might be planning to buy the energy-drink maker. If that's the case, he said, investors should look for Coke to begin selling off some bottling assets to raise money. Still, he noted that if Coke were to consider such a move, it may draw fire from shareholders since the purchase price would amount to a "king's ransom."
Shares of Monster Beverage rose nearly 3% Thursday to close at $65.38, giving it a market value of $11.5 billion. Assuming some premium, the purchase would be the largest in Coca-Cola's history. Given the size of the deal, investors may be skeptical of the possibility.
Which stock is a better buy, Coke or Pepsi? Hear one analyst's take in the following video.
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Still, energy drinks remain one the fastest-growing sectors of the beverage market, and Coke's attempt to enter the market with its own Full Throttle has proven to be a failure.
Benzinga spoke to another analyst on the possibility, but he declined to comment on the record as he was not authorized to speak on the matter.
"Yes, the price Coke would have to pay for Monster would be the biggest hangup," he stated. "Still, Coke wants to be a bigger presence in the energy drink market and they already have a fairly close distribution relationship with Monster. The move would be elevating that to the next level. They could do it, but they would really have to be excited about Monster's growth prospects."
Shares of Coca-Cola closed Thursday up 1.04% to $75.71.
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VIDEO ON MSN MONEY
This stuff is poison. A quick fix, but leaving a void beyond that short burst of so-called "energy."
So.....just what's a body to do when it is tired, worn out, and sleepy? After all, your body is trying to tell you something; something you need very badly.
Answer: Pull over and sleep, dammit.
This is a typical stock market ploy to help increase stock price for Monster. This type of stock market scam/hustle concerning a buy out like this takes place on paper; and on paper it will actually turn out (appear) in the end on paper that Monster buys Coke; raising Coke stock price in the end. Mean while those who purchased Monster stock end up losing when the stock drops after the buy out. Never trust what you hear; a large number of writers and so called experts get their pockets lined on a standard basis for helping miss direct potential stock buyers. The stock market is just a paper casino and there is no bail out for stock holders when things go bad. A safe bet for those who must by stock in the hope of making bank on this merger is to buy both Coke and Monster stock, that way the odds are in your favor and at worse you will break even. Remember there is no real deal at the moment and this deal maybe just a basic ploy/rumor to help raise monster stock price.
Want to know a little secret, Pepsi Co. through all its subsidiary holdings has controling stock in Coke. Sad, but known to insiders as very true. So in the end Monster will be owned by Pesi Co. :(
Christian Wylder
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