Peet's to Extend Diedrich Tender: Report
EMERYVILLE, Calif. (
) --
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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