Green Mountain Coffee Roasters, Inc. (GMCR) Wednesday raised its
offer to buy Diedrich Coffee, Inc. (DDRX) to $35 a share in cash,
after rival Peet's Coffee & Tea Inc. (PEET) increased its
bid.
Green Mountain, which had earlier offered to buy Diedrich for
$32 a share in cash, said in a statement its new offer values
Diedrich at about $290 million.
Peet's latest bid on Tuesday offered Diedrich shareholders
$32.50 a share in cash and stock, based on Monday's closing price,
valuing Diedrich at more than $265 million.
Diedrich said its board continues to view Green Mountain's bid
as the "superior proposal," not only because of its higher
consideration, but also because of more favorable terms.
The new GMCR merger agreement provides for a reduction in the
limitations and restrictions on Diedrich's ability to operate its
business during the period prior to the completion of the
transaction, as compared to the Peet's merger agreement, as well as
an increase in the time period during which Diedrich may remedy
deficiencies relating to the satisfaction of certain conditions to
the tender offer, Diedrich said.
"We are eager to start realizing the benefits of this
transaction for our shareholders as quickly as possible, and
therefore after careful deliberation, we determined to enhance our
proposal to $35.00 per Diedrich share," said Lawrence J. Blanford,
president and chief executive of GMCR.