Coca-Cola last night issued a statement to announce it was pulling out of a takeover deal with Quaker Oats reportedly worth $16 billion.
As reported by WAMN [20-Nov-00], members of Coke’s board are believed to have been uneasy over the price and regulatory implications of the deal, and also reluctant to take on Quaker’s food business.
However, the two-sentence statement took the unusual step of expressing “enthusiastic support” for chief executive Douglas Daft, thought to be the architect of the takeover talks, adding that his leadership was “the best means for enhancing shareholder value”.
Quaker, whose chief prize is the Gatorade sports beverage brand, may now reopen talks with Coke’s soft drinks rival Pepsi or French company Danone.
News source: BBC Online Business News (UK)