Monster Beverage paring some gains after report that founders interested in Constellation deal
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Monster Beverage (NASDAQ:MNST) is paring some of its earlier gain post earnings, now up 3.7%, after a report that Monster's founders may be interested in a deal with Constellation Brands (NYSE:STZ).
Monster Beverage (MNST) founders believe that diversifying their product offering would be a positive, according to CNBC's David Faber, who cited people familiar. Faber added that a lot of Monster shareholders are questioning a deal with Constellation, especially a possible merger of equals.
The report comes after Bloomberg reported earlier this month that Monster (MNST) and Constellation (STZ) are in merger talks and that a deal could be reached in the coming weeks if talks go smoothly. Bloomberg first reported in November that MNST was said to explore a deal with STZ.
Faber added as far as the deal talks "things are moving a bit slower" than had been implied by the Bloomberg story. The question of what Coca-Cola (NYSE:KO), who has a 19% stake in Monster (MNST), might do, is what it unknown at this point.
"It does appear that they (MNST) are engaged in talking about this," Faber said.
Also see, Monster Beverage Non-GAAP EPS of $0.62 beats by $0.01, revenue of $1.43B beats by $100M.