P.M. BRIEFING : Buffett Seeks U.S. OK to Boost Coca Cola Share to 15% From 7%
Billionaire investor Warren E. Buffett said today he plans to seek government approval to boost his holdings in Coca-Cola Co. from almost 7% to 15%.
The news sent Coke stock sharply higher and the share price rose $1.50 to $65 by midday in active New York Stock Exchange trading.
In a filing with the Securities and Exchange Commission, Buffett’s Berkshire Hathaway Inc. investment company said it intends to seek to buy as much as 15% of the soft drink and entertainment company’s voting shares.
The influential Omaha, Neb.-based investor, whose stock purchases are widely imitated, said he currently holds 6.75% of Coca-Cola’s common stock outstanding.
Buffett, chairman and principal shareholder of Berkshire Hathaway, on July 20 was named to Coca-Cola’s board of directors.
Analysts said it was highly unlikely that Buffet would seek to take control of the company.
In SEC filing, he said his interests in the company remain limited to a passive investment and he has no plans for any extraordinary corporate transactions.
Coca-Cola’s products include its soft drinks and Minute Maid orange juice. It also owns 49% of movie studio Columbia Pictures Entertainment Inc.
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