Warren Buffett dismisses Coca-Cola bid rumours

Warren Buffett, America’s most prominent investment magnate, has denied that he is working on a takeover of Coca-Cola, the world’s biggest drinks company.

The Sage of Omaha, dismissed comments made by a US investment manager that he was working on taking Coke private.

"Absolutely no chance of that," Buffett responded in a TV interview on Tuesday afternoon.

Shares in Coca-Cola, the world’s biggest drinks company, rose by almost 1pc yesterday on the back of a wildcard rumour Buffett was planning to take the business private. Market sources said the fact that Winter’s comments had even caused Coca-Cola’s shares to rise, or gain tranction, was evidence of how frothy the market was.

Activist investor David Winters, who owns a stake in Coke and has already publicly criticised the drinks group’s incentive pay plan, had said in a letter to investors that he was concerned that Mr Buffett’s Berkshire Hathaway investment firm was planning a “sweetheart” deal.

The money manager based his theory on loose reports which suggested that Berkshire could follow its takeover of Heinz by teaming up with private-equity group 3G Capital.

“Where there is smoke there is fire and there is certainly a desire to do a big deal here,” said Mr Winters, chief executive officer of Wintergreen Advisers LLC, in a letter.

“We are concerned that a similar type of sweetheart, insider deal for Coca-Cola could, in our opinion, significantly undervalue Coca-Cola and irreparably harm Coca-Cola shareholders.”

Mr Winters went on to say in an interview on Fox TV “[Buffett] is looking for a big deal, he’s made a public statement, he’s praised 3G, he’s swimming in cash and he loves consumer product companies and loves Coke.”

Berkshire Hathaway owned 400 million shares of Coca-Cola as of last month, or just over 9pc of the company.