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Dunkin Brands shares surged to a record high on Tuesday amid speculation that Coca-Cola or one of its rivals could look to acquire the booming coffee brand.
Coca-Cola paid $5.1 billion last month to acquire British coffeehouse chain Costa, in a move that placed the beverage giant in direct with Starbucks and other coffee industry leaders. If that acquisition, Coke's largest ever, proves to be a success, Dunkin would make a natural takeover target for the company whose brands include Dansai bottled water and Honest Tea.
"We do not comment on rumor or speculation," a Dunkin Brands spokesperson told FOX Business.
Dunkin shares rose over 4% on the takeover speculation.
Coca-Cola's acquisition of Costa included all of the brand's roughly 3,800 stores, the majority of which are located in the United Kingdom, according to the Wall Street Journal.
Dunkin Brands had a market cap in excess of $6 billion as of Tuesday, much smaller than rival Starbucks, whose market cap is $72 billion.