CAN/US: Cott shares rise on Crescendo purchase
Shares in soft drinks group Cott Corp. rose sharply yesterday (27 May) after the private equity group Crescendo Partners said it had acquired an 8.7% stake in the Canadian-based private-label specialist.
The Delaware-based PEG also stated that it planned to take an active role in the company as a large shareholder.
Cott's shares rose by 26 cents, or 8.2%, to close at $3.43 on Tuesday. The rise during the day had been as sharp as 16%.
In a regulatory filing with the Securities and Exchange Commission (SEC), Crescendo said it bought around 5.9m Cott shares, with principals of the investment group acquiring a further 276,966 shares.
Crescendo said the the shares were "very undervalued and represented an attractive investment opportunity".
A first-quarter loss, announced in April and attributed to rising costs and falling volumes, was the latest in a series of disappointing announcements from Cott, which has seen its share price fall by 52% since January. In February, Cott said Wal-Mart was reducing the amount of shelf space given to Cott-produced lines, resulting in a downgrade from UBS.
Crescendo said it was engaged in discussions with Cott management concerning its business and future plans, and was also discussing having representation on the company's board.
Jones Soda has reported a net loss of US$5.3m for the third quarter, as the economic downturn bites the US soft drinks sector....
Cott Corporation has seen impairment charges in its third quarter hammer its net profit deeper into the red....
The top ten most visited stories on just-drinks this week:...
The management at Cott Corporation has said it remains upbeat about the future, despite lowering its expectations for this year....
- Aus wine industry pays price for past failures
- What's in store for Super Bowl 50 - Focus
- Six key trends for alcoholic drinks in 2016
- Ten things to know about spirits in the US
- Carlsberg's Q4 & Full Year - Preview
- William Grant & Sons restructures US team
- Diageo's Orphan Barrel The Gifted Horse - NPD
- Diageo completes wine category exit in US
- Beam Suntory targets Kenya with Edrington/FIX
- Diageo's Oban Little Bay single malt Scotch - NPD
- What Next for Beer and Brewers Following the MegaBrew Deal?
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global Beer Trends 2015 : Global Beer Trends and Long-term Forecasts
- Global Whiskey Market 2016-2020
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research