Wanna buy a Coke? How ‘bout all of Coke?
An outspoken investment adviser who has criticized Coca-Cola’s executive pay in the past posited in a letter sent to the Atlanta company’s board Monday that the publicly traded soda behemoth could be a target for private ownership.
In the letter, Wintergreen Advisers CEO David J. Winters said he thinks 3G Capital and Berkshire Hathaway, Warren Buffett’s company, intend to work together to take Coke —with a market value of $179 billion — private. The two paired to take ketchup-maker H.J. Heinz Co. private last year.
But Buffett reportedly told CNBC there was “absolutely no chance” he would be involved in such a deal. Through Berkshire Hathaway, Buffett is Coke’s largest stockholder, with a 9 percent share.
Buffett has said in the past that he thinks Coke’s compensation plan is “excessive.” That, coupled with the fact that Buffett’s son is on the boards of both Coca-Cola and Berkshire Hathaway, led Winters to argue that Coke could be a target.
Winters isn’t a fan of the idea, which he said could “significantly undervalue Coca‐Cola and irreparably harm Coca‐Cola shareholders.” He thinks the Heinz deal could act as a blueprint for a larger plan.
John Sicher, the editor and publisher of Beverage Digest, said the theory was “highly unlikely.” Coke is better served as a public company, he said.
“I think the likelihood is about as great as Barack Obama and John Boehner having a complete meeting of the minds on everything,” he said.
A Coca-Cola spokesman declined comment.
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