Coca-Cola holds talks to "salvage" Costa Coffee deal

Coca-Cola Co is holding "last-ditch" discussions with preferred Costa Coffee bidder TDR Capital in an attempt to "rescue" the deal, the Financial Times reported on Saturday.

Citing "people familiar with the matter", the FT said that Asda owner TDR was picked as the preferred bidder for the coffee shop chain earlier this week. However, one source said talks with Coca-Cola and its advisers at Lazard "have stumbled over the price".

The sources said Coca-Cola "will make a decision next week on whether to shelve the sale process altogether". The current deal under discussion would see Coca-Cola keeping a minority stake in Costa, one said, although the holding's size "could be adjusted in Coke's favour".

The FT previously reported that the Atlanta, Georgia-based beverage company was aiming to sell Costa for around GBP2 billion, having paid GBP3.9 billion to buy it from Premier Inn owner Whitbread PLC in 2018.

The outlet reported that Coca-Cola did not respond to a request for comment, while TDR and Lazard declined to comment.