Nov 20 Teavana Holdings Inc, which is
set to be acquired by Starbucks Corp, issued a
statement on Tuesday rebutting a research report from a short
seller that said its teas have pesticides in amounts that exceed
The report, issued on Tuesday by investment firm Glaucus
Research Group California LLC, said Glaucus had Teavana teas
independently tested and that they contained pesticides that
exceeded United States and European Union regulatory limits.
Teavana shares fell 76 cents, or 5 percent, to $14.67 on the
New York Stock Exchange. Starbucks shares were up 0.3 percent at
$49.91 on the Nasdaq.
Teavana, which sells loose-leaf teas and tea-related
merchandise, said its teas undergo rigorous testing based on
international food safety standards.
It pointed out that Glaucus was a short-seller that may
benefit from the allegations made in its report.
Glaucus made no secret of its bias.
"We are biased ... obviously we will make money if the price
of Teavana stock declines," the company said in its report.
"Just because we are biased does not mean we are wrong."
Glaucus said it thought lawsuits would be forthcoming and
Starbucks would eventually abandon its agreement to acquire what
it called a "tarnished consumer brand".
Starbucks spokeswoman Lisa Passe said the company was acting
in accordance with its merger agreement.
"We will assess developments that occur as warranted but
beyond that I am not going to speculate," Passe said.