GMCR Wins Bidding War for Diedrich Coffee
Diedrich Coffee Inc. announces that it has entered into a merger agreement with Green Mountain Coffee Roasters Inc. pursuant to which GMCR will acquire all of the outstanding shares of common stock of Diedrich Coffee for $35.00 in cash per share.
The board of directors of Diedrich Coffee had previously determined and announced that the GMCR $35 per share, all-cash offer was superior to the terms of the merger agreement with Peet's Coffee & Tea Inc. and the exchange offer contemplated thereby, as amended by the revised proposal received from Peet's on Nov. 30, 2009 (which revised proposal subsequently expired on Dec. 1, 2009).
Peet's had until 5:00 p.m. Pacific Time on Monday, Dec. 7, 2009 to negotiate with Diedrich Coffee to amend the Peet's merger agreement and the exchange offer contemplated thereby in a manner that the board of directors of Diedrich Coffee determined to be at least as favorable to Diedrich Coffee's stockholders as the transaction with GMCR. Peet's failed to submit a new proposal to Diedrich Coffee by such deadline. Accordingly, Diedrich Coffee terminated the Peet's merger agreement, has paid to Peet's the $8,517,000 termination fee required thereby and entered into the merger agreement with GMCR. The termination fee was paid to Peet's on behalf of Diedrich Coffee by GMCR.
The board of directors of Diedrich Coffee had previously determined and announced that the GMCR $35 per share, all-cash offer was superior to the terms of the merger agreement with Peet's Coffee & Tea Inc. and the exchange offer contemplated thereby, as amended by the revised proposal received from Peet's on Nov. 30, 2009 (which revised proposal subsequently expired on Dec. 1, 2009).
Peet's had until 5:00 p.m. Pacific Time on Monday, Dec. 7, 2009 to negotiate with Diedrich Coffee to amend the Peet's merger agreement and the exchange offer contemplated thereby in a manner that the board of directors of Diedrich Coffee determined to be at least as favorable to Diedrich Coffee's stockholders as the transaction with GMCR. Peet's failed to submit a new proposal to Diedrich Coffee by such deadline. Accordingly, Diedrich Coffee terminated the Peet's merger agreement, has paid to Peet's the $8,517,000 termination fee required thereby and entered into the merger agreement with GMCR. The termination fee was paid to Peet's on behalf of Diedrich Coffee by GMCR.
