Apollo Global Management (APO) has held early talks with advisers to Coca-Cola (KO) about a possible bid for British coffee chain Costa Coffee, Sky News reported Wednesday, citing sources familiar with the situation.

The process is still at a preliminary stage, with indicative offers not expected for several weeks, the sources told Sky News, adding that Apollo may ultimately decide against making a formal bid.

KKR (KKR), another US-based private equity firm, has also spoken with Lazard, Coca-Cola's adviser, but is considered unlikely to submit a binding offer for the coffee chain, according to the report.

Apollo, Coca-Cola, and KKR didn't immediately respond to MT Newswires' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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