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AUSTRALIA: CCA Asian sale could generate US$1 bln

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The investment bank Credit Suisse First Boston said it is anticipating that Coca-Cola Amatil will sell its South Korea, Indonesia and the Pacific Islands within the next year and a half.

In a note to clients, the bank said that it expects the sale to generate up to US$1 bln.

"The Asia components of Coca-Cola Amatil are diminishing in importance. The company is emphasising local earnings," CSFB said.

It added: "The divestiture of Indonesia and South Korea could be significantly EPS positive and value accretive."

Late last week, CCA CEO Terry Davis said that said the Australasian soft drink producer was returning focus to Australia and New Zealand in a drive for earnings and profit growth.

He added that, while it was still too early to make a decision, any part of the business that was not performing could be disposed of.

Davis said the company wanted signs of improvement in South Korea and Indonesia before it would consider expanding its presence in Asia.


Sectors: Soft drinks

Companies: Coca-Cola Amatil

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