Atlanta soft drink titan Coca-Cola Co. could be taken private in a deal involving Warren Buffett’s Berkshire Hathaway, an investment adviser said in a Tuesday letter to Coke’s board of directors.
But Buffett told CNBC there was “absolutely no chance” that Coke, with a current market value of $179 billion, would be taken over by his company and 3G Capital, CNBC reported. Berkshire Hathaway and 3G together acquired H.J. Heinz Co., and took it private, last year.
The investment adviser, Wintergreen Advisers CEO David J. Winters, has been outspoken in his opposition to Coke’s executive compensation plan. Buffett, who is Coke’s largest shareholder through Berkshire Hathaway, has also said he thought the plan was “excessive.”
In his letter, Winters said the Heinz deal could serve as a blueprint for a takeover of Coke. Any similar deal could “significantly undervalue Coca‐Cola and irreparably harm Coca‐Cola shareholders,” Winters wrote. “Since Berkshire is Coca‐Cola’s largest shareholder, owning greater than 9% of the outstanding shares, and Warren Buffett’s son Howard serves as a Director of both Coca‐Cola and Berkshire Hathaway, we believe our concerns are valid.”
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