The Wall Street Journal, May 16, 2007, ATLANTA - SunTrust Banks Inc. began a restructuring plan that includes selling 9% of its Coca-Cola Co. stock.
The bank said it recently sold 4.5 million of its 48.2 million Coke shares. SunTrust said it will decide what to do with the rest by year's end.
Chief Executive James Wells said the decision to sell the shares came because the holdings weren't reflected in the SunTrust's stock price. He also said he is focusing on cost cutting and balance-sheet management as revenue opportunities continue to be a challenge.
SunTrust acquired its stake in Coca-Cola when its predecessor, Trust Co. of Georgia, helped underwrite the initial public offering of Coca-Cola in 1919. As a result, the bank received some of Coke's publicly traded stock. The number of shares grew throughout the years through dividend reinvestments and stock splits.
The original copy of the secret Coke formula is held at SunTrust's headquarters, and Coca-Cola Chief Executive E. Neville Isdell sits on SunTrust's board. James Williams, former chairman and CEO of SunTrust, is a Coca-Cola director.
SunTrust remains the beverage company's second-largest shareholder, after Warren Buffett's Berkshire Hathaway Inc