Dutch Coffee Company DEMB In Buyout Talks

D.E. Master Blenders 1753, the Dutch coffee company that was spun off by Sara Lee Corp. last June, says it is in talks to be acquired by a group led by private German investment company Joh. A. Benckiser GmbH for around €7.6 billion ($9.7 billion). Benckiser owns stakes in Peet's Coffee & Tea Inc. and Caribou Coffee, among others.

AMSTERDAM (AP) -- D.E. Master Blenders 1753, the Dutch coffee company that was spun off by Sara Lee Corp. last June, says it is in talks to be acquired by a group led by private German investment company Joh. A. Benckiser GmbH for around €7.6 billion ($9.7 billion).

Benckiser owns stakes in Peet's Coffee & Tea Inc. and Caribou Coffee, among others.

Master Blenders said in a statement Thursday the potential buyers are looking at a price of €12.75 per share, a 33 percent premium to Wednesday's closing price. But they haven't made a formal offer.

The company's shares soared 26 percent to €12.14 in Amsterdam trading Thursday.

Master Blenders had a poor start as an independent company, with profits and estimates falling, and accounting irregularities uncovered at its Brazilian arm.

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