Coke set to buy Glaceau for $4.2 bln -NYT

Fri May 25, 2007 3:37am EDT

(Adds details, background)

NEW YORK May 25 (Reuters) - Coca-Cola Co. (KO.N) has approved the purchase of vitamin water maker Glaceau for $4.2 billion in cash and Coke stock, the New York Times reported on its Web site on Friday.

The deal was scheduled to be announced on Friday, the paper said, citing an unnamed executive involved in the talks.

Representatives for Coke and Glaceau could not be reached immediately.

Glaceau is 30 percent owned by India's Tata Tea Ltd. TTTE.BO, and is the No. 2 maker of enhanced water behind PepsiCo Inc.'s (PEP.N) Propel.

Glaceau sold 77 million cases last year, compared with Propel's 95 million, according to industry publication Beverage Digest.

The publication reported earlier this week that Coca-Cola had filed a premerger notification with U.S. regulators about a proposed purchase of Glaceau.

((Reporting by Paritosh Bansal; Editing by David Cowell; +1 646-223-6000; paritosh.bansal@reuters.com)) Keywords: GLACEAU COKE/

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