Coffee Flop Shows What US Investors Won't Swallow
The slump in Keurig Dr Pepper's shares suggests shareholders are highly skeptical about its purchase of Dutch coffee company JD Peet's.
The slump in Keurig Dr Pepper's shares suggests US investors are highly skeptical about its purchase of Dutch coffee company JD Peet's.
Photographer: Stefani Reynolds/Bloomberg
When a chief executive officer is working on a career-defining deal, a key question they should ask advisers is how their share price will react. If only someone had warned Keurig Dr Pepper Inc. boss Tim Cofer that the beverage firm’s value would fall by 18%, losing $8 billion, in two days on his decision to buy JDE Peet’s NV.
The savage market reaction challenges the idea that shifting assets into different corporate structures automatically creates value for shareholders.