coca-cola boss 'sees no value in' foster's takeover - pet resin
THE more Coca-
Terry Davis, owner of Cola Amatil, said Foster's Group acquisition was out of his line of sight and it seems that few people believe him.
Almost nothing for four years,
Returning to capital projects and strong organic growth, it is doubtful that Davis has discovered the temptations of the beverage companies he has worked for and is eager to run, which is irresistible, according to the Australian Daily.
However, it is difficult for Coca-Cola owners to emphasize this more.
"I like to invest in capital projects that have twice the return on acquisitions," Davis said . "
"Except Bolt --
On the product side, I think there is no reason to change this in the next two to three years.
"Any foster bid must first be made to four people --year-
The old Pacific Beverage joint venture with SABMiller, a global beer maker, has a 10 per cent share of the local high-end beer market.
But since Foster's share price is around $6 a share, Mr Davis has repeatedly said that once the stock is well above $5, it is difficult for him to see any value.
Interestingly, given distribution and supply, CCA may have the ability to pay more for Foster than any trade buyer
Provides chain synergies.
Davis scoffed at the estimate of saving $0. 26 billion a year.
"The number is far from that close, but the other numbers I see suggest that the number is $100. "$150," he said . "
"In a $12 billion acquisition, ROCE has improved (
Return on Capital used). "Guess what?
This will not change the direction of the transaction.
They don't have their own brand in Europe, and they don't have full exposure to their brand in the United States.
"So you bought an Australian asset game.
"You can forgive Mr. Davis for his anger at something he never had.
Ending Foster's speculation, given his deliberate vow in 2006 of mass
The private equity market began a large-scale acquisition after "crazy.
He said that once the trade buyer is forced to pay a multiple of the income of 13 times before interest, tax and depreciation, they will not be able to get a decent return.
History also shows that "gambling farm" does not deliver the expected return for brave or reckless CEOs and boards.
So Mr Davis turned his attention to capital projects such as the cold
Start-up of beverage equipment, infrastructure and zero projects-
The lofty goal of the transformation of manufacturing systems and processes is to completely eliminate waste.
In the 10 years ended 2009, the average capital expenditure of CCA as a percentage of income fell to about 6, about half of the level of the previous 10 years.
Davis is refocusing on capital spending, and this trend is starting to rise again to 8-
9 per cent in the past three years.
The company will now launch a five-point plan for the next phase of evolution.
The $0. 5 billion program will enable CCA to control more supply chains by making lightweight PET bottles.
Davis expects that after the project is completed, it will save $100 million per year, reducing the use of PET Resin by more than one, eliminating empty bottle storage and reducing the cost of handling and transportation.
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Originally published in coca