Peet's Coffee Agrees to $1 Billion Takeover by Germany's JAB |
| Wall Street Journal - Jul 23, 2012 |
Peet's Coffee & Tea Inc. (PEET) agreed to be taken private in a $1 billion cash acquisition by private German investment group Joh. A. Benckiser, news that jolted shares to their highest level in months.
Shares in the struggling coffee seller surged 29% to $73.85 after being halted ahead of the news. The trade puts the stock at its highest level since it started tumbling on a first-quarter profit miss at the beginning of May, exacerbated by high coffee costs. In late March, shares had hit an all-time high of $77.60.
The movement also elevates the share price above the $73.50-a-share level of the Joh. A. Benckiser's deal, which indicates investors are speculating that another suitor may emerge to set off a bidding war.
Peet's, which is focused on the bagged-coffee segment, has struggled with higher coffee-bean costs in recent months. The coffee retailer lacks pricing power at grocery stores as it already sells at a premium to other brands, even Starbucks Corp. (SBUX) products. However, prices have begun to ease recently, making the stock and Peet's business prospects more attractive.
Read Full Article from Wall Street Journal
- Posted: 2012-07-23 12:12:34
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