Hedge Fund Manager On Keurig Green Mountain: 'Coke Is Only Going To Buy More If The Price Falls'

Speaking exclusively to Benzinga, Rand Strategic Partners Founder Todd Sullivan said that a lot of people rushed to buy shares of Keurig Green Mountain Inc

after The Coca-Cola Co

took a $1.3 billion stake at $76 a share because they thought that Coca-Cola would eventually buy the rest of it. But as a recent 10K filing revealed, Keurig bought back about $1.18 billion worth of its stock at an average price of $103. He said it's highly unlikely Coca-Cola will take over Keurig at the current share price, especially since the beverage company is already under scrutiny for wasting money. If Coca-Cola did buy at these prices, Sullivan explained, its active shareholders would have a field day. “It's remote at best that coke does anything with Green Mountain,” he said. Sullivan also pointed out that Keurig CEO Brian Kelley is a former president at Coca-Cola, and while the Keurig cold brew may be in development, Sullivan isn't sure the consumer would have any reason to switch from regular Coca-Cola drinks. “Unless the Coca-Cola tastes exactly the same as it does out of a can, why would you buy the cold brew system?”