In a CNBC program on Tuesday’s morning, Becky Quick provided insight on Warren Buffett rejecting Wintergreen Advisers’ David Winters statement speculating that Mr. Buffett wants to take The Coca-Cola Company (NYSE:KO) private. During an interview in FOX Business Network’s “Opening Bell” program, David Winters said that Mr. Buffett is working with 3G Capital to take The Coca-Cola Company (NYSE:KO) private.
“So where there is smoke there is fire and there is certainly a desire to do a big deal here. There were articles that came out in the Brazilin press and the U.S. press about a Coke 3G Berkshire Hathaway tie up and it all seems like something is going on here,” Mr. Winters said.
In a letter sent to the board of directors of The Coca-Cola Company (NYSE:KO), Mr. Winters expressed his disappointment with the company’s proposed 2014 equity plan, saying that they believe the new equity compensation plan will significantly erode the per-share value of the company’s shares. Wintergreen Advisers owns around 2.51 million shares of The Coca-Cola Company (NYSE:KO).
However, Mr. Buffett told CNBC that there is absolutely no chance of taking The Coca-Cola Company (NYSE:KO) private. According to Mr. Buffett, this is not going to happen. Mr. Buffett and his fund Berkshire Hathaway holds around 400 million shares of The Coca-Cola Company (NYSE:KO), representing more than 9% of the shares outstanding.
“Winters is in a position where he’s fighting with coke’s management. He was upset with the soft payout and the plan. He tried to wage the proxy battle. Warren Buffett didn’t vote with Winters but said he was opposed to the stock plan, too,” according to a CNBC’s reporter.
“Warren Buffett said he thought the plan was rich. But he has said he’s in favor of coke management. Loves them. Loves what they are doing.”
Shares of The Coca-Cola Company (NYSE:KO) edged up by 0.20% so far trading to $40.74, although the beginning of the trading was marked by a bigger spike. The consensus average target price for the stock is $44.67, and the consensus recommendation is ‘Overweight.’
The full video from CNBC can be watched below: