Coke in Talks to Buy Highland Spring

Coca-Cola Co. is in talks to buy Britain's No. 2 bottled water brand Highland Spring in a potential 500 million pound ($992.7 million) deal, British Sunday newspapers reported.

The Sunday Times and Sunday Telegraph, citing industry
sources, reported Coke, the world's No. 1 beverage company, was in talks with
Highland Spring, owned by the Dubai based Tajir family.

A spokeswoman for Highland Spring declined to comment. Coke
could not be immediately reached.

Coke's foray into the British water market three years ago
failed after samples of its Dasani bottled water showed it was little more than
filtered tap water. Coke withdrew the product from British shops.

Coke, like rival PepsiCo, has suffered amid an industry-wide
slowdown as health-conscious consumers move away from soft drinks in favor of
bottled waters, teas and energy drinks.