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Major Dr Pepper Snapple stockholder mulls stake sale ahead of Keurig deal

Michael Lindsell, the ninth-largest shareholder of U.S.-based beverage maker Dr Pepper Snapple Group Inc., is likely to sell his stake in the company before the planned merger with coffeemaker company Keurig Green Mountain Inc., Reuters reported March 13, citing Lindsell's letter to investors.

Keurig in January announced its plan to acquire Dr Pepper in a deal that is expected to create a U.S. beverage giant with about $11 billion in annual sales. However, Lindsell, whose interest in the company is valued at about $380 million, reportedly said he does not see the logic of the proposed transaction.

"We are yet to be persuaded of the compatibility of the businesses," Lindsell said in the letter. "To us distribution of single-serve coffee is very different from canned or bottled beverages.

"No doubt there are some scale benefits and in particular overlapping costs that can be eliminated, but we have yet to be persuaded that we want to be an enthusiastic holder of the combined business which has at least initially a huge overhang of debt."