In Dr Pepper Snapple, Keurig Green Mountain is buying a drinks company—and, just as importantly, a currency to keep the deals flowing.
The unusual deal announced Monday involves Keurig paying Dr Pepper shareholders not just $103.75 a share, or $18.7 billion—8.5% more than last Friday’s market value—but also a share in the combined company, Keurig Dr Pepper. Exactly what that share will be worth is the key question for investors in the short term. Dr Pepper Snapple shares jumped 25% to $120 in early-afternoon trading.
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