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Coke-P&G deal changing
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August 14, 2001: 5:27 p.m. ET
Soft drink maker says $4B joint venture will be materially different from plans
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NEW YORK (CNNfn) - Soft drink maker Coca-Cola Co. is scaling back plans to develop and market juices and salted snacks with consumer products leader Procter & Gamble Co., according to a statement from Coke.
According to a filing with the Securities and Exchange Commission, Coke said "we anticipate that the nature and terms of any transaction that may result will differ materially from the transaction originally announced in February 2001."
That original joint venture was estimated to be worth $4 billion. The deal was expected to be a boon to consumer products leader P&G, giving it access to Coke's vast distribution network. A.G. Lafley, CEO of P&G, estimated at that time that the new deal would make its Pringles snacks available in 10 times as many U.S. outlets, for example. In return, Coke was to gain access to P&G's rich research and development resources. The two companies said at that time that they would work to develop new juices, juice-based beverages and snacks.
Coke's statement with the SEC said the deal is not completely dead.
"Both parties intend to continue working together to complete a mutually beneficial transaction," it said.
That commitment to continue the deal in some form was stressed by a P&G spokeswoman Tuesday, although she said the company could make limited comment at this time.
"We're continuing to work through the details of the agreement," said Margaret Swallow of P&G.
An end to the deal would be seen as particularly bad news for P&G, which posted its first quarterly loss in eight years earlier this month. The company is in the process of cutting its work force by an estimated 9 percent.
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Both Coke and P&G are components of the Dow Jones industrial average. Shares of Coke (KO: Research, Estimates) closed trading Tuesday up 24 cents to $46.04, while shares of P&G (PG: Research, Estimates) gained 38 cents to $72.50. 
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P&G, Coke set $4B joint venture - Feb. 21, 2001
P&G tops 4Q earnings estimates - Aug. 7, 2001
P&G taking $1.4B charge, confirms targets - June 15, 2001
P&G slashing 9,600 jobs, 9% of global work force - Mar. 22, 2001
Coke 2Q beats Street - July 18, 2001
Coke beats Street in 1Q but cuts growth outlook - Apr. 18, 2001
P&G tops 4Q earnings estimates - Aug. 7, 2001
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