Green Mountain Ups Bid For Diedrich Coffee

WATERBURY, Vt. (AP) -- Green Mountain Coffee Roasters has raised its offer by $2 per share for Diedrich Coffee, matching a rival bid from Peet's Coffee & Tea.

Both Peet's and Green Mountain are vying for a stake in Diedrich's K-Cup business.

Green Mountain's proposal of $32 per share in cash has a total value of $265 million. Peet's made a cash-and-stock bid on Sunday evening also valued at $265 million.

Green Mountain said its revised offer provides Diedrich shareholders with a substantial all-cash premium and greater value.

Green Mountain's bid represents a 57 percent premium to Diedrich's closing stock price on Nov. 2, the last trading day before news emerged of a proposed tie-up between Diedrich and Peet's.

Diedrich said its board is considering Green Mountain's revised offer of $32 a share.