Main Dr Pepper Snapple shareholder might promote stake forward of Keurig merger

LONDON (Reuters) – Certainly one of soda-maker Dr Pepper Snapple’s (DPS.N) largest shareholders has stated it could promote its shares within the enterprise forward of a proposed merger with Keurig Inexperienced Mountain, questioning the logic of the deal.

FILE PHOTO: Snapple bottles are seen inside a retailer in Port Washington, New York Could 7, 2008. REUTERS/Shannon Stapleton/File Photograph

Keurig agreed on Jan. 29 to supply $18.7 billion in money a stake within the enlarged firm to mix with Dr Pepper Snapple and type a North American drinks firm, with manufacturers comparable to Inexperienced Mountain Espresso, 7UP, Snapple and Sunkist.

However some traders have questioned the logic of mixing the cold and warm drinks companies.

A single-serve Keurig Inexperienced Mountain brewing machine is seen in New York February 6, 2015. Image taken February 6, 2015. REUTERS/Shannon Stapleton

Michael Lindsell, co-founder of London-based Lindsell Prepare, Dr Pepper Snapple’s ninth largest shareholder, stated in a letter to traders he was contemplating promoting the agency’s stake valued at greater than $380 million, in response to Reuters calculations.

“We’re but to be persuaded of the compatibility of the companies. To us distribution of single serve espresso could be very totally different from canned or bottled drinks,” he stated in his first feedback because the deal was introduced.

“Little doubt there are some scale advantages and particularly overlapping prices that may be eradicated, however we now have but to be persuaded that we wish to be an enthusiastic holder of the mixed enterprise which has at the very least initially an enormous overhang of debt.”

Dr Pepper didn’t instantly reply to a request for remark.

Reporting by Alasdair Pal; Modifying by Mark Potter

Yasir Ali
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