In response to numerous inquiries, The Coca-Cola Company (NYSE: KO) confirmed yesterday that it has been in discussions with The Quaker Oats Company (NYSE: OAT) regarding a possible transaction. Coca-Cola emphasized that while there can be no assurance that such discussions will result in a transaction, it would only consider an agreement that advances The Coca-Cola Company's strategy of continuing to build a total non-alcoholic beverage company.

Coca-Cola chairman and chief executive officer Doug Daft said: "Any agreement must be consistent with our strategic program and enhance our ability to increase value to our shareowners and our other constituents, as well as deliver value to consumers."