Monday , September 16 2019
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Time for Warren Buffett to switch up his drink of choice?

Summary:
Call it dietary diversification: PepsiCo could be the next target for Kraft-Heinz after its failed takeover of Unilever, says CreditSights.Half of Kraft-Heinz is owned by Warren Buffet and private equity firm 3G. Buffett says he drinks five Coca-Colas every day. (Not the diet kind, improbably.)Now, some reports have speculated that AB-Inbev — the megabrewer created by 3G — could buy Coca-Cola, in which Buffett has a roughly 9 per cent stake. But as far as large targets go, though, Coca-Cola is pretty pricey. From the CreditSights note:The numbers look much more doable at PEP… PEP has a lower multiple and operating margin than KO. The margin difference is due in part to the fact that KO operates as a pure-play beverage company, while PEP generates over 50% of its revenue from snacks.A large

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Call it dietary diversification: PepsiCo could be the next target for Kraft-Heinz after its...

Alexandra Scaggs
Alexandra Scaggs is a markets reporter for the Wall Street Journal in New York. She writes about the U.S. stock market and investment trends. She also covers the business of markets research, writing on the calls, personalities and moves of high-profile analysts and strategists. Ms. Scaggs graduated from Washington & Lee University with a degree in business journalism.

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