Peet's continues exchange offer, will not increase bid for Diedrich

By Lisa Kerner

Charlotte, N.C., Dec. 7 - Peet's Coffee & Tea, Inc. said it will not further enhance its exchange offer to acquire Diedrich Coffee, Inc. even though Diedrich recently determined that Green Mountain Coffee Roasters, Inc.'s offer for Diedrich is superior.

According to Peet's, its $32.50-per-share proposal expired, leaving in place its original $26.00-per-share offer.

While Diedrich is now entitled to terminate its Peet's merger agreement, Peet's pending exchange offer will continue until midnight ET on Dec. 15.

Peet's will pay a combination of $17.33 in cash and a fraction of a share of Peet's common stock for a total value of $26.00 per Diedrich share, according to a Peet's news release.

The company is negotiating a revised financing arrangement in connection with the pending exchange offer.

"We expect to be in a position to close a transaction within a matter of weeks," Peet's president and chief executive officer Patrick O'Dea said in the release.

"Conversely, it is our view that there are significant antitrust issues and resulting timing and closure risks associated with GMCR's competing proposal."

Green Mountain, a Waterbury, Vt.-based specialty coffee company, offered $35.00 per share in cash for Diedrich.

Based in Irvine, Calif., Diedrich is a specialty coffee roaster, wholesaler and retailer.

Peet's is an Emeryville, Calif., specialty coffee and tea company.

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