UPDATE 1-Coca-Cola Enterprises seeks majority Bravo! stake
Thu Jul 14, 2005 08:42 AM ET
(Recasts with details from Coca-Cola Enterprises' statement)
CHICAGO, July 14 (Reuters) - Coca-Cola Enterprises Inc. (CCE.N: Quote, Profile, Research) on Thursday said it acquired options to buy shares of Bravo! Foods International Corp., which makes vitamin-fortified flavored milk, and was negotiating for distribution rights.
Coca-Cola Enterprises, the world's largest Coca-Cola bottler, said the options were intended as a "first step" in acquiring a majority stake in Bravo. (BRVO.OB: Quote, Profile, Research)
Coca-Cola Enterprises expects its total investment to be about $38 million. The options expire on Aug. 31, 2005.
In a separate statement, Bravo said the options to buy stock, convertible securities and warrants from 12 shareholders represent about 23 percent of Bravo's authorized shares of common stock.
Bravo said the two companies were negotiating a distribution agreement for the sale of Bravo's products in the United States and internationally.
Bravo said its directors had formed an independent committee to negotiate with Coca-Cola Enterprises, and the board has authorized the committee to hire an independent banker to evaluate the deal.
