India's Tata Tea to get $1.2 bln for Glaceau stake

(Updates with background, stock price)

MUMBAI, May 25 (Reuters) - India's Tata Tea Ltd. (TTTE.BO) said on Friday it would receive about $1.2 billion for selling its 30 percent stake in vitamin water maker Glaceau to Coca-Cola Co. (KO.N). Ahead of the announcement, shares in Tata Tea Ltd. (TTTE.BO) surged more than 7 percent to a 15-month high of 941.25 rupees before closing up 4 percent at 913.65 rupees.

Coca-Cola said on Friday it would buy Glaceau for $4.1 billion in cash. For story, double click on [nN25443592].

Tata Tea bought the 30 percent stake last August for $677 million. Twenty-five percent of the stake was held by its UK subsidiary, Tata Tea (GB) Investments Ltd., and its holding company Tata Sons had the other 5 percent.

((Reporting by M.C. Govardhana Rangan, editing by John Mair; e-mail:govardhana.rangan@reuters.com; +91-22-6636 9246)) Keywords: GLACEAU TATATEA/

(C) Reuters 2007. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nBOM245110