There’s a lot of fuss lately over a coffee company with a market capitalization of just $190 million.
Peet’s Coffee & Tea Inc again raised its bid for Diedrich Coffee, this time to $32.50 a share, besting the $32 per share, all cash offer from Green Mountain Coffee.
Diedrich’s shares are trading above the offer prices at $33.99, up 87 cents, or 2.63 percent, suggesting that investors expect another bid from Green Mountain.
Stifel Nicolaus analysts said they expected Diedrich to declare the latest Peet’s Coffee offer as superior, prompting Green Mountain to come back with yet another bid.
The analysts said it would have to be “meaningfully higher” than the current Peet’s cash-and-stock offer given the potential for upside if Peet’s stock rises.