Apollo Global Management (NYSE:APO) has held initial talks with advisers to Coca-Cola (NYSE:KO) regarding the beverage giant’s potential sale of its Costa Coffee chain, according to a media report.
The alternative asset manager, which owns The Restaurant Group, is one of a small number of potential bidders to have held talks for the British chain, Sky News reported, citing sources close to the process. The discussions are at a very early stage, and Apollo (NYSE:APO) might decide not to pursue a formal offer for Costa, they said.
Indicative bids aren’t due for several weeks, they added. KKR (KKR), another U.S. private equity firm, had spoken with Coca-Cola’s (NYSE:KO) adviser, Lazard (LAZ), but was unlikely to make a firm bid, Sky News said.
Apollo (APO) stock rose 0.9%, and Coca-Cola (KO) stock ticked down 0.1% in Wednesday morning trading.