take over by coke

Bottled water group Palm Springs Ltd sought a trading halt in its shares, pending an announcement.

The Australian Financial Review reported today that Coca-Cola Amatil Ltd is in takeover talks with Palm Springs, the country's second largest delivery spring water group.

Palm Springs board members have met to consider the offer and are believed to favour a bid of between 19 cents and 23 cents per share, the paper reported.

That would value Palm Springs at between $30 million and $35 million. advertisement

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Palm Springs chief executive Chris Borschman told the paper the company would consider its options before making any decision.

A successful takeover would give Coco-Cola Amatil a 60 per cent share of the water market, up from a current 35 per cent.

The company already oversees 60 per cent of the carbonated drinks market.

Coca-Cola Amatil last year paid $300 million to acquire Neverfail Springwater.