COKE<CCE> SAYS ITS UNIT ITS PRICING PROBE TARGET
Coca-Cola Enterprises Inc said one
of its key bottling subsidiaries is being investigated by a
grand jury for possible price fixing violations of its soft
drinks.
    In a filing with the Securities and Exchange Commission,
the company said its Mid-Atlantic Coca-Cola Bottling Co
understands a federal grand jury in Norfolk, Va., is probing
the matter and it is "possible" that it will be indicted for
violating anti-trust laws.
    The current probe stems from the conviction last month of
an Allegheny Pepsi-Cola Bottling Co employee, it said.
    In the trial of the Allegheny Pepsi employee, Armand
Gravely on October 28, 1986, Mid-Atlantic Coca-Cola Bottling Co
and eight of its employees, including some high ranking
officers, were identified as unindicted co-conspirators in the
price fixing scheme, Coca-Cola Enterprises said.
    Gravely was convicted on February 12, 1987 in a scheme to
fix soft drink prices in Virginia between Allegheny Pepsi and
Mid-Atlantic Coca-Cola, the company said.
    While Mid-Atlantic Coca-Cola was not named as a defendent
along with Gravely, the company said the probe into the Gravely
case is still under way and could result in indictments.
    Coca-Cola Enterprises has already said Mid-Atlantic
Coca-Cola Bottling Co and some of its officers have been under
investigation by the Norfolk grand jury since September 1984.
    The new disclosure was made in a filing with the SEC for
offerings of 250 mln dlrs of debentures due 2017 and 250 mln
dlrs of notes due 1997.
    Proceeds would be used to refinance outstanding debts, the
company said. Salomon Bros is lead underwriter.
    Coca-Cola Enterprises is 49 pct owned by Coca-Cola Co <KO>.
 Reuter
