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

By Staff,

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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 Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: PEET , SBUX

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