The Financial Review reported today that Coca-Cola has indicated it believes Australia's Coca-Cola Amatil's exit from its Philippines operation "makes sense".

President of Coca-Cola, Jack Stahl, would not confirm a deal has been reached but said that the company is in discussions with CCA on Coca-Cola Bottlers Philippines Inc.

The Review report claims that Stahl made the comments during a conference call with analysts after the company released Coca-Cola's full year results. Stahl is also reported to have told the conference: "Amatil is going to structure itself in a way where it can grow its value even faster going forward that it did owning the Philippines."

He continued: "And by the Philippines being in effect re-localised, we think the market will be better served at that point."

San Miguel, the Philippino beer company, is believed to have secured 65% of Coca-Cola Bottlers Philippines, with Coke taking 35%. Reports this week indicate that San Miguel and Coke had agreed to price the bottling operation at its $2.1 billion book value, with San Miguel swapping its 21.5% stake in CCA for the larger 65% stake in the Philippines operation.

San Miguel Corp., which is to hold a meeting today, announced that it has appointed two new executives to its board of directors - Vitaliano Nanagas and Winston Garcia, the heads of state pension funds Social Security System (SSS) and Government Service Insurance System (GSIS).

Nanagas and Garcia replace Carlos Arellano and Federico Pascual former heads of SSS and GSIS who resigned in January.

The SSS and GSIS have approximately a 6% stake each in San Miguel.