Coca-Cola (KO) Denies Coca-Cola Enterprises (CCE) Buyout Rumors

According to reports from Reuters, Coca-Cola (NYSE: KO) denied rumors that it plans to buyout its largest bottler Coca-Cola Enterprises Inc. (NYSE: CCE). Link

Coca-Cola CEO Neville Isdell said, "We have no intention to buy CEE."

Earlier in the month, financial publication Barron's reported on the possibility of a merger between the two.

Coca-Cola Enterprises (CCE) Higher Following Barron's Takeover Report

Coca-Cola Enterprises (NYSE: CCE) is higher today following a weekend Barron's article which said there is talk on Wall Street, Coca-Cola (NYSE: KO) could buy out the large bottler. According to Morgan Stanley analyst Pecoriello, Coke could pay about $27 per share to gain control of the company (Coke currently owns about 36% of the company).

The report also said deal or no deal, Coca-Cola Enterprises looks reasonably priced - trading at 16x projected 2006 earnings versus a 17 multiple for rival Pepsi Bottling Group (NYSE: PBG).

Shares of Coca-Cola Enterprises are 4% to $21.04 in afternoon action.