(Reuters) – Less than three years after spending billions of dollars to acquire most of its U.S. distribution operations, Coca-Cola Co (KO.N: Quote, Profile, Research) is starting to sell it off again.
Getting out of the capital-intensive, low-return business of delivering bottles and cans of soda to stores, restaurants and vending machines will improve margins. That, and a higher-than-expected quarterly profit on Tuesday, sent shares of the world’s largest soft-drink maker up nearly 6 percent.
(Reuters) – Coca-Cola Co (KO.N: Quote, Profile, Research, Stock Buzz) reported a slightly higher-than-expected quarterly profit on Tuesday and announced a deal to unload some distribution territory to five independent U.S. bottlers, sending its shares up more than 5 percent in morning trading.
The move by the maker of Sprite, Fanta and Minute Maid is “a major step in the transformation of its U.S. production and distribution,” said Stifel Nicolaus analyst Mark Swartzberg.
(Reuters) – J.C. Penney Co Inc (JCP.N: Quote, Profile, Research, Stock Buzz) has borrowed $850 million from its $1.85 billion revolving credit facility to help buy inventory as the department store operator revamps its business strategy after a failed turnaround.
The company said on Monday it will use the proceeds to fund its working capital needs and capital expenditures, including buying inventory as it overhauls its home goods department, an effort it expects to complete next month.
AMSTERDAM (Reuters) – German investor Joh A Benckiser (JAB) is to buy the owner of Douwe Egberts coffee in a 7.5-billion-euro (6.3 billion pounds) deal to create a global hot drinks empire aimed at taking on market leaders Nestle (NESN.VX: Quote, Profile, Research) and Mondelez International (MDLZ.O: Quote, Profile, Research).
D.E Master Blenders 1753 (DEMB.AS: Quote, Profile, Research), the Dutch owner of Douwe Egberts coffee and Pickwick tea, said on Friday it had reached conditional agreement on a 12.50 euros per share cash takeover offer from a group of investors led by JAB.
AMSTERDAM (Reuters) – German investor Joh A Benckiser (JAB) is to buy the owner of Douwe Egberts coffee in a 7.5-billion-euro ($9.8 billion) deal to create a global hot drinks empire aimed at taking on market leaders Nestle and Mondelez International.
D.E Master Blenders 1753, the Dutch owner of Douwe Egberts coffee and Pickwick tea, said on Friday it had reached conditional agreement on a 12.50 euros per share cash takeover offer from a group of investors led by JAB.
NEW YORK, April 11 (Reuters) – Troubled J.C. Penney Co Inc
has hired Blackstone Group LP’s financial
advisory arm to explore how best to position the firm
financially, three sources said on Thursday, while key investor
William Ackman said shareholders were willing to put up more
The prospect of financial backing is likely to help soothe
investors rattled by the department store chain’s controversial
decision this week to let go Apple alum Ron Johnson as
CEO after a failed turnaround and bring back his predecessor –
whose leadership was also much criticized.
NEW YORK (Reuters) – J.C. Penney Co Inc board member William Ackman on Thursday acknowledged the shortcomings of the CEO he handpicked to turn around the retailer and said he was optimistic about the company and its future.
Speaking at a luncheon in New York, Ackman said Penney’s former chief executive Ron Johnson was not at the company’s Texas headquarters enough, since his family lives in California. Even though Johnson worked hard, Ackman said the lack of his physical presence “affected the morale of the home team.”
(Reuters) – Burger King Worldwide Inc (BKW.N: Quote, Profile, Research, Stock Buzz) forecast a slightly higher quarterly profit on Thursday than Wall Street expected, even though spending among fast-food diners remains weak.
The hamburger chain, which has a long history of ownership and management changes, also said Chief Executive Bernardo Hees will leave to take over at H.J. Heinz Co (HNZ.N: Quote, Profile, Research, Stock Buzz).
April 10 (Reuters) – Constellation Brands Inc
reported a higher-than-expected fourth-quarter profit on
Wednesday, as the company benefited from an acquisition and
selling a greater number of more expensive products.
Constellation, the world’s largest branded wine company, is
poised to become the nation’s No. 3 beer maker behind
Anheuser-Busch InBev and Miller Coors ,
once it takes over Grupo Modelo’s U.S. business.
April 9 (Reuters) – In a case that could shake one of the
world’s largest accounting firms, KPMG said it
resigned as auditor of two U.S. companies as the FBI on Tuesday
began investigating insider trading allegations involving a
former KPMG senior partner.
The companies – nutritional products group Herbalife Ltd
and footwear maker Skechers USA Inc – said
separately that KPMG had quit as their auditor in connection
with alleged leaks of nonpublic information.