China Blocks Coca-Cola’s $2.3 Billion Huiyuan Bid

Discussion in 'Stocks' started by lukematt, Mar 18, 2009.

  1. lukematt


    During privatization in the Czech Republic, Coca-Cola announced a bottling and distribution deal for the country's second largest city, Brno, with a company named Fruta Modrice.

    Of course, Fruta Modrice's share price skyrocketed.

    After enough normal people got sucked into buying Fruta Modrice shares on the basis of this "good news", Coca-Cola announced that they were terminating the agreement because Fruta Modrice's bottling equipment wasn't up to standards. (Didn't Coca-Cola check the equipment **before** announcing the deal?)

    The situation with China Huiyuan Juice Group's shares seems very similar.