Robbins Umeda LLP Announces an Investigation of Peet's Coffee & Tea, Inc.
July 23 2012 - 8:07PM
Business Wire
Shareholder rights firm Robbins Umeda LLP has commenced an
investigation into possible breaches of fiduciary duty and other
violations of the law by members of the board of directors of
Peet's Coffee & Tea, Inc. (NASDAQ: PEET) in connection with
their efforts to sell the company to Joh. A. Benckiser. Concerned
shareholders who would like more information about their rights and
potential remedies can contact attorney Gregory E. Del Gaizo at
(800) 350-6003, info@robbinsumeda.com, or via the shareholder
information form on the firm's website.
On July 23, 2012, Peet's announced that it had entered into a
definitive merger agreement to be acquired by Joh. A. Benckiser.
According to the terms of the deal, Joh. A. Benckiser will acquire
all of the outstanding shares of Peet's through an all cash
transaction. Pursuant to the agreement, Peet's shareholders will
receive $73.50 in cash for each share of the company they own. The
transaction is expected to close in approximately three months.
Robbins Umeda LLP's investigation focuses on whether the board
of directors at Peet's is undertaking a fair process to obtain
maximum value and adequately compensate shareholders. At least four
market analysts have released target prices for Peet's that value
the company's stock between $80 and $95 per share, considerably
higher than the value currently being offered by Joh. A. Benckiser
as a part of the proposed transaction. Additionally, shares of
Peet's common stock have traded and closed above the current offer
price as recently as May 1, 2012, closing on that day at $75.23 per
share.
Furthermore, on May 1, 2012, Peet's reported earnings that
represented substantial increases over 2011 figures. Specifically,
Peet's reported net revenue of $94.8 million for the first quarter
of 2012, a 7% increase over the $88.5 million in revenue reported
during the same quarter of the previous fiscal year. Patrick O'Dea,
the President and Chief Executive Officer of Peet's, also expressed
optimism about the company's continuing growth prospects, stating:
"As we previously indicated, we expect to gain significant momentum
in the second half as coffee cost inflation abates, and we remain
excited about the strategic growth initiatives we're investing in
this year."
Given these financial results, recent target prices, the
performance of Peet's common stock, Robbins Umeda LLP is examining
the board's decision to sell Peet's now rather than allow
shareholders to continue to participate in the company's continued
success and future growth prospects.
Robbins Umeda LLP attorneys highlight that Peet's shareholders
have the option to file a class action lawsuit against the company
to secure the best possible price for the company's shareholders
and the disclosure of material information to shareholders so they
can vote on the transaction in an informed manner.
Robbins Umeda LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion of value for themselves and
the companies in which they have invested. For more information,
please go to http://www.robbinsumeda.com.
Press release link:
http://www.robbinsumeda.com/shareholders-rights-blog/peets-coffee-tea-inc/
Attorney Advertising. Past results do not guarantee a similar
outcome.
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