Green Mountain Shares On Rollercoaster Ride Due To Nestlé Rumours, SEC Investigation

Shares in US coffee producer Green Mountain Coffee Roasters have been on a rollercoaster ride in recent days. On Monday the firm's shares hit a new high on rumours that Nestlé was considering launching a bid for the business (see chart). However, in after-market trading on Tuesday, Green Mountain's shares were trading down 16% after the company revealed that the US Securities and Exchange Commission (SEC) is conducting an inquiry into the company's revenue recognition practices. Although the numbers involved are relatively small when compared to the company's overall revenues and market capitalisation, such investigations often have a long-standing impact

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