Coke (KO) is reportedly in negotiations to take a possible minority stake in China Huiyuan Juice Group (CYUNF.PK). Last month, Chinese regulators rejected Coke's proposed $2.4B full takeover of Huiyuan on antitrust grounds.
Shares of China Huiyuan Juice Group (CYUNF.PK) are off 6% in Hong Kong. Investors are worried regulators may block Coca Cola's (KO) $2.3B buyout, although many analysts don't see any reason they would.
Coca-Cola (KO) pays $2.3B for China Huiyuan Juice Group (CYUNF.PK), doubling its fruit-juice lineup in China. At HK$12.20/share, the price is triple yesterday's close - meaning either China stocks are massively undervalued, or Coke is desperate to ramp up its presence.