Peet's to Extend Diedrich Tender: Report

EMERYVILLE, Calif. (TheStreet) -- Peet's Coffee & Tea (PEET) is expected Monday to extend its tender offer for shares of Diedrich Coffee (DDRX) by 30 days, Reuters reports, citing a source with knowledge of the situation.

Peet's move signals its anticipation that Green Mountain Coffee Roasters' (GMCR) bid to buy Diedrich could face potential roadblocks from regulators, Reuters says.

Green Mountain Coffee signed a definitive agreement to acquire Diedrich Coffee for $35 a share, or for a total of about $290 million, in December.

But on Jan. 13, the U.S. Federal Trade Commission, which is reviewing the deal on antitrust grounds, issued a second request for information. That was enough for Peet's to decide that it should stay in the game and offer Diedrich shareholders the option to tender their shares to Peet's, should Green Mountain's proposal run into regulatory roadblocks, a source told Reuters.

Peet's $26-a-share tender offer, which expired on Friday at midnight, could be extended again beyond the initial 30-day extension, the source told Reuters.

Green Mountain and Diedrich have said they expect their merger to close in early 2010, despite the second FTC request.

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