Wall Street Journal
Peet's Coffee & Tea Inc. raised its offer for Diedrich Coffee Inc. to $32 a share in cash and stock, or $265 million, after rival Green Mountain Coffee Roasters Inc. proposed buying the company for $30 a share.
Diedrich stock soared 27% to $32.95 in morning trading Monday, indicating investors think bidding on the company may go higher.
The Green Mountain offer was first announced Monday by Peet and Diedrich in separate releases. Diedrich said its board is reviewing both proposals.
Earlier this month, Peet's agreed to pay $26 a share for Diedrich, in a deal that would allow Peet's to enter the rapidly growing market for single-cup packets used in coffee and espresso makers.
In the new proposal, Peet's would pay a combination of $19.80 a share in cash and 0.321 share of Peet's for each share of Diedrich common stock. Green Mountain's offer is all cash.
"We are confident that the Diedrich board will find our revised proposal to be superior for Diedrich's shareholders," Peet's Chief Executive Patrick O'Dea said Monday.
"We believe our offer provides Diedrich shareholders with a substantial all-cash premium as well as greater value and greater certainty than the cash and stock proposal from Peet's," said Green Mountain CEO Lawrence J. Blanford said Monday. Green Mountain would finance its bid with cash on hand and existing bank lines of credit.
Diedrich stock soared 27% to $32.95 in morning trading Monday, indicating investors think bidding on the company may go higher.
The Green Mountain offer was first announced Monday by Peet and Diedrich in separate releases. Diedrich said its board is reviewing both proposals.
Earlier this month, Peet's agreed to pay $26 a share for Diedrich, in a deal that would allow Peet's to enter the rapidly growing market for single-cup packets used in coffee and espresso makers.
In the new proposal, Peet's would pay a combination of $19.80 a share in cash and 0.321 share of Peet's for each share of Diedrich common stock. Green Mountain's offer is all cash.
"We are confident that the Diedrich board will find our revised proposal to be superior for Diedrich's shareholders," Peet's Chief Executive Patrick O'Dea said Monday.
"We believe our offer provides Diedrich shareholders with a substantial all-cash premium as well as greater value and greater certainty than the cash and stock proposal from Peet's," said Green Mountain CEO Lawrence J. Blanford said Monday. Green Mountain would finance its bid with cash on hand and existing bank lines of credit.
