Key Developments For Peet's Coffee & Tea Inc
Peet's Coffee & Tea Inc (PEET.O) (Nasdaq)
Diedrich Coffee, Inc. To Extend Deadline for Response From Peet's Coffee & Tea, Inc.
Diedrich Coffee, Inc. announced that it will extend the period that Peet's Coffee & Tea, Inc. has to negotiate a proposal with Diedrich Coffee to amend the current merger agreement and the offer contemplated thereby in a manner that Diedrich Coffee's Board of Directors determines is at least as favorable to Diedrich Coffee's stockholders as the revised offer of Green Mountain Coffee Roasters, Inc. until 5:00 p.m. Pacific Time on November 30, 2009. In a press release issued earlier today that its Board of Directors had determined that the recently revised offer from GMCR continues to be a superior proposal to the terms of the merger agreement with Peet's, Diedrich Coffee announced that Peet's had until 5:00 p.m. Pacific Time on Friday, November 27, 2009, to negotiate a proposal with Diedrich Coffee to amend the current merger agreement. In a later press release issued by Peet's, Peet's indicated that it interprets the relevant provisions of the merger agreement differently in that Peet's believes that it has until 5:00 p.m. Pacific Time on Monday, November 30, 2009 to negotiate a proposal with Diedrich Coffee to amend the current merger agreement. In the interest of ensuring the best possible outcome for the stockholders of Diedrich Coffee, the Board of Directors of Diedrich Coffee has decided not to debate interpretations of the merger agreement but will extend the relevant period to 5:00 p.m. Pacific Time on Monday, November 30, 2009.
Diedrich Coffee, Inc. Superior Announces Green Mountain Coffee Roasters, Inc.'s Revised Offer Superior To Peet's Coffee & Tea, Inc's Offer
Peet's Coffee & Tea, Inc. announced that it has issued the following statement after an announcement by Diedrich Coffee, Inc. that Diedrich`s Board of Directors has determined a proposal from Green Mountain Coffee Roasters, Inc. to acquire Diedrich for $32.00 per share in cash to be superior to the November 22, 2009 enhanced acquisition proposal submitted by Peet`s. Peet`s had proposed to acquire Diedrich in a cash-and-stock transaction valued at $30.35 per share, or a total value of approximately $251 million, based on the closing price of Peet`s common of stock of $32.86 on November 24, 2009. That proposal expired this morning and is no longer in effect.
Diedrich Coffee, Inc. Evaluating Revised Offer From Peet's Coffee & Tea, Inc.
Diedrich Coffee, Inc. announced that, on November 22, 2009, it received a revised offer from Peet's Coffee & Tea, Inc., offering to pay to Diedrich Coffee's stockholders a combination of $19.80 in cash and 0.321 of a share of Peet's common stock for each share of Diedrich common stock tendered and accepted in its exchange offer, representing total consideration of $32.00 per share. Peet's submitted its revised offer in response to a binding offer received by Diedrich Coffee from Green Mountain Coffee Roasters, Inc. to enter into a merger transaction pursuant to which GMCR would acquire all of the outstanding shares of common stock of Diedrich Coffee for $30.00 per share in cash. Under the terms of the Peet's merger agreement, Peet's has until 5:00 p.m. Pacific Time on November 27, 2009, to negotiate with Diedrich Coffee to amend the current merger agreement in a manner that the Diedrich Coffee Board determines is at least as favorable to Diedrich Coffee's stockholders as the proposal made by GMCR. As part of those negotiations, Peet's has submitted the revised offer to Diedrich Coffee. In light of the different forms of consideration in the Peet's proposal and the GMCR proposal, Diedrich Coffee's Board is analyzing the two proposals to determine whether the GMCR proposal continues to be a Superior Proposal to the terms of the Peet's merger agreement and the exchange offer contemplated thereby as amended by the proposal received from Peet's.
Peet's Coffee & Tea, Inc. Increases Diedrich Coffee, Inc. Acquisition Proposal To $32.00 In Cash and Stock, Expresses Confidence In Revised Offer
Peet's Coffee & Tea, Inc. announced that it delivered to the Board of Directors of Diedrich Coffee, Inc. on November 22, 2009 a proposal to enhance its previously announced offer to acquire Diedrich. Peet's revised proposal is a cash-and-stock offer valued at $32.00 per share, or a total value of approximately $265 million, based on Peet's closing stock price of $38.00 on November 20, 2009. Peet's enhanced its proposal in response to notification from Diedrich that it had received a competing offer from Green Mountain Coffee Roasters, Inc. for $30.00 per share in cash. Diedrich's Board of Directors concluded on November 20, 2009 that Green Mountain's offer was superior to the original Peet's proposal of $26.00 per share in cash and stock. Under the terms of Peet`s revised proposal, Peet`s will pay a combination of $19.80 in cash and 0.321 of a share of Peet`s common stock for each share of Diedrich common stock tendered and accepted in its exchange offer. The stock component of the revised purchase price is based on a fixed exchange ratio, so the value of that component will increase or decrease with changes in the market price of Peet`s common stock. This represents a change from the stock component of the purchase price in the original acquisition agreement, which was based on a fixed dollar value per share of Diedrich common stock subject to a maximum of 0.315 of a share.
Peet's Coffee & Tea, Inc. To Buy Diedrich Coffee, Inc. For $212 Million-Reuters
Reuters reported that Peet's Coffee & Tea, Inc. agreed to buy Diedrich Coffee, Inc. in a $212 million cash-and-stock deal, to enter the fast growing single-cup coffee market. The deal values Diedrich Coffee, Inc. at $26 a share, a premium of 28% over its Monday closing price of $20.36. Under the deal, Peet's Coffee & Tea, Inc. will acquire Diedrich Coffee, Inc.'s portfolio of brands including Diedrich Coffee, Coffee People and the single-serve rights to the Gloria Jean's coffee brand. Peet's Coffee & Tea, Inc. said it will finance the acquisition through a combination of cash on hand and $140 million of debt financing. The acquisition is scheduled to close by the end of 2009.
