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RUMORS OF COMPANY BEING SNAPPLED-UP RAISE STOCK PRICES

     Rumors struck Snapple Beverage again Friday, "except this
time they boosted the price of the company's stock."  Shares of
the company's stock surged as much as 26% as "Wall Street buzzed
about the possibility of a takeover."  Coke, Pepsi and Philip
Morris were among the rumored suitors, "although several analysts
dismissed the talk."  Merrill Lynch's Allan Kaplan said a bid by
Coke or Pepsi would be "ludicrous" because the cost of the
acquisition would outweigh the earnings produced.  An investment
newsletter, Wall Street Strategies, told subscribers that it had
heard a major beverage company would bid $25 a share, or $3B for
the company. Snapple's stoke closed at 14 5/8, up 2 3/8 (James
Lyons, N.Y. DAILY NEWS, 10/22).  Other observers said Quaker Oats
would be a more logical Snapple suitor.  "Ironically, Quaker,
with its successful Gatorade product, has been rumored to be a
buyout target of Pepsi.  Purchasing Snapple would help Quaker
fend off potential predators" (ATLANTA CONSTITUTION, 10/22).
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Related Topics:

Coca-Cola, PepsiCo

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