Coca-Cola (KO) Drops Costa Sale Plans After Bids Fall Short, FT Reports

Group 1 - The Coca-Cola Company has abandoned its plans to sell Costa Coffee after receiving lower-than-expected private equity bids [2][3] - The auction process for Costa Coffee, which had been ongoing for several months, was effectively shut down in December [3] - Coca-Cola was aiming for approximately £2 billion for Costa, a significant reduction from the £3.9 billion it paid in 2018 [4] Group 2 - The decision to pause the sale comes at a critical time as Coca-Cola's COO, Henrique Braun, is expected to succeed James Quincey as CEO in March [4] - Quincey previously indicated that Costa had "not delivered" for Coca-Cola, raising concerns about the brand's value on the company's books [5] - Costa has faced challenges in certain markets, including a £48.6 million impairment related to its operations in China due to weaker demand [5]