Coffee Day shares surge on report of acquisition by Coca-Cola

Mumbai, June 27 (IANS) Coffee Day Enterprises on the Thursday surged over 11 per cent before closing 3.62 per cent higher on the BSE over reports that softdrink maker Coca-Cola is mulling over buying majority shares in Cafe Coffee Day.Coca-Cola had last year announced the acquisition of UK-based coffee chain Costa Coffee and CCD could be its second coffee chain acquisition.V.G Siddhartha, the founder and CEO of Coffee Day Enterprises that runs CCD chain, has been selling assets in order to cut debt. He recently exited from his 20.32 per cent holding in Mindtree by selling the entire stake to construction major Larsen and Toubro.Industry experts said that CCD may also be monetised as part of the exercise. For Coca Cola, acquisition of CCD fits the plan to expand non-carbonated business. Sales of carbonated drinks have been on a decline and Cola majors across the globe are looking at diversification.
--IANS ravi/prs