Coke takes fizz out of Monster rumor

The company shoots down market speculation that it would buy the energy-drink powerhouse.

By Kim Peterson Apr 30, 2012 4:41PM
Coca-Cola (KO) is shooting down the idea that it might buy Monster Beverage (MSNT), sending shares of the energy-drink maker down after a wild trading day.

Coke sent out a pretty definitive denial late Monday. "At this time, we are not in discussions to acquire the Monster Beverage Corporation," the company said in a statement. "We continue to review the best ways to maximize the value of our relationship."

That statement effectively erased all the gains Monster shares made Monday after The Wall Street Journal reported that Coke was in talks to buy Monster. Our partner Benzinga reported the same thing last week.

Monster opened Monday at $65.54 and soared as high as $83.96 -- a 28% gain -- on huge trading volume. The share gain was so intense that trading was halted twice Monday for about five minutes each, Forbes reports.

Coca-Cola shares lost less than 1% Monday to close at $76.32.

So how did this rumor take off? That's unclear. But some people made and lost a bunch of money on Monster Monday.

The following video has some details on why people thought Coke would be interested in buying Monster.


Tags: KOMNST
12Comments
Apr 30, 2012 4:57PM
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In a related story rumors fly that Pepsi may purchase Godzilla.

Apr 30, 2012 5:08PM
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just goes to show that the stock market should be treated the same as gambling and taxed the same.

Apr 30, 2012 5:32PM
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juuuuuuust one more monster!!  jjjjjuuuuusssst one more!!!  I'm almost wired enough for the day!!   ooooooffffff course, i...i....i.....i'll neeeeeeeed a Xanax to calm down tonight, but right now I NEED ENERGY!!!!!!

Apr 30, 2012 6:57PM
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Just wondering why this would even happen if it were not true, I love Coke, it is the best drink out there, no comparison to Pepsi.  And, I worked for a Coke owner in the past.  There is a clear difference.  LOL KO!
Apr 30, 2012 6:02PM
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Monster is a trend product that won't even exist in five years. Smart move by Coke.
Apr 30, 2012 5:50PM
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Also, give me a stock market where the minimum hold period is 30-60 days and I'll gladly start buying again. I am not interested in provided capital for the day traders to manipulate.

 

I wouldn't mind if its monetary value was set by a market basket of the 5 leading currencies with the dollar being no more than 35%...that way the turkeys running the printing presses wouldn't have more effect on the value than profit and loss statements.

Apr 30, 2012 6:20PM
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hahahaha. Sucks to be a day trader on this one. Those suckers lost big.
small percentage earned 25%, the rest lost 20%.
stupid people sit in front of their computer all day and twitch at the tiniest rumor.
Apr 30, 2012 5:47PM
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LOL, Coke clearly knew after the share price jumped 28%.....

Apr 30, 2012 7:06PM
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Good, leave Monster the way it is.

Apr 30, 2012 5:37PM
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They clearly should have put a stop to this rumor this weekend before the market even opened. Coke clearly knew over the weekend that it never planned on purchasing Monster. It is not classy to mislead people all day after investors lost money while others gained, and then say OH By the way: " We are always looking for ways to maximize our values with the company but are not in disscussions this time of purchasing the company". Sounds like someone is  trying to make a quick  buck or unload shares.
Apr 30, 2012 6:45PM
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Talendor, I accidently hit thumbs down, but I really like the commentary you provided.  Good stuff.

Apr 30, 2012 6:45PM
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I guess most of those who profited on this smelly Good ol' boy deal were/are Coke Execs who needed some extra cash for the summer at the Manse in the Hampton's? This sounds like the kind of deals that JFk's  dad ran when he ran an unregulated Wall Street in the '20's ...not much has
 changed...

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