Market Chatter: Peet's Coffee and Tea Rumored to Attract Starbucks Bid; Shares Trade Above Buyout Price

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Peet's Coffee & Tea Inc. ( PEET ) has investors wagering that rival bidders will attempt to top a $1 billion takeover offer that already represents the most expensive U.S. beverage deal, according to a report in SF Gate.

JAB, a closely held German holding company, announced a July 23 agreement to take Peet's private for about $1 billion plus the assumption of its cash, which translated into a $73.50 per share offer.

The SF Gate report stated that Starbucks ( SBUX ) may be interested in making a counterbid to gain a more expensive grocery store brand and prevent Peet's from expanding its coffee shops, according to Wedbush.

Oscar Gruss & Son says Starbucks, which was founded five years after Peet's, could pay as much as $80 a share to beat out the offer from JAB.

Paul Kranhold, a spokesman for Peet's, wouldn't comment on whether the company has been in contact with another bidder or received other offers.

Jim Olson, a spokesman for Starbucks, said the Seattle company doesn't comment on market rumors.

PEET shares are have turned negative after touching a day high $75.65, and have traded in a 52-week range of $51.16 - $77.60.

SBUX shares are down 2.5% to NEAR $45.70.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: PEET , SBUX

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