Coca-Cola to invest $4 bn more in China to 2014
Coca-Cola will invest $4 billion more in China from 2012 to 2014, the Xinhua news agency reported on Thursday, citing the company’s chairman and chief executive. Muhtar Kent told Xinhua in an interview that the investment will mainly be used to expand the company’s products and packaging, to expand its infrastructure and distribution system, and to invest in cold drink equipment. The investment plan comes on top of a previously announced investment of $2 billion during 2009-2011, which turned out to be $3 billion upon completion, Xinhua said. On the possibility of listing on the international board of Shanghai Stock Exchange which is still under discussion, the Coca-Cola CEO said that if the opportunity arose, it would be interested. “It will be a mutually beneficial action if we are listed,” Kent told Xinhua, adding that “it would be a good thing not just for the reasons of capitalization but also for reasons of being a stronger part of the Chinese community.”
Foster board says $10-bn SABMiller bid too low
Foster’s Group rejected a hostile A$9.5 billion ($10 billion) bid by SABMiller as too low, with analysts predicting that the suitor will need to raise its offer for Australia’s biggest brewer. SABMiller, the world’s second-largest beermaker by volume, took its A$4.90-a-share bid directly to investors on Wednesday after failing to engage the board of Foster’s in talks following its initial June 21 approach. The London-based maker of Miller Lite and Grolsch may have to raise the offer price by 6% to A$5.20 a share to win over investors. Buying Melbourne-based Foster’s would give SABMiller access to about half of the Australian beer market and brands including Victoria Bitter. It would be the biggest acquisition ever by the brewer, which sells beers including Peroni and Castle lager.
Lenovo net nearly doubles on emerging markets
Lenovo, China’s biggest maker of personal computers, reported first-quarter profit almost doubled, beating analysts’ estimates, after it boosted sales in emerging markets and increased shipments to businesses. Net income climbed to $108.8 million in the three months ended June 30, or 1.08