Coke Gets A Bailout? (Podcast)

| About: The Coca-Cola (KO)
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Summary

Coke spent $2 billion on its GMCR stake.

Oops.

But it was saved at the last minute by the GMCR takeout.

Rangeley Capital's portfolio managers Andrew Walker and Chris DeMuth Jr. host a fifteen-minute podcast, which you can subscribe to on Apple's (AAPL) iTunes, Stitcher, or Soundcloud. If you missed the previous podcast episode, then please check out 3 Big Deals (STRZA, SYT, CTCT, EIGI).

In the current episode, we talk about Keurig (NASDAQ:GMCR), a company that Coca-Cola (NYSE:KO) massively invested in, and what has happened to that investment recently. For background reading, StW members should check out Adding Coffee to Our Cash Arb Basket. Coke's cost basis in Keurig was $91 per share. The takeout price was…$92 per share.

According to Coke CEO Muhtar Kent,

The Coca-Cola Company is fully supportive of this transaction.

Quite.

Disclosure: I am/we are long GMCR, SYT, CTCT, STRZA.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Chris DeMuth Jr and Andrew Walker are portfolio managers at Rangeley Capital. Rangeley invests with a margin of safety by buying securities at deep discounts to their intrinsic value and unlocking that value through corporate events. In order to maximize total returns for our investors, we reserve the right to make investment decisions regarding any security without further notification except where such notification is required by law.