Robbins Umeda LLP Announces an Investigation of Peet’s Coffee & Tea, Inc.
Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by members of the board of directors of Peet’s Coffee & Tea, Inc. (NASDAQ: PEET) in connection with their efforts to sell the company to Joh. A. Benckiser. Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
On July 23, 2012, Peet’s announced that it had entered into a definitive merger agreement to be acquired by Joh. A. Benckiser. According to the terms of the deal, Joh. A. Benckiser will acquire all of the outstanding shares of Peet’s through an all cash transaction. Pursuant to the agreement, Peet’s shareholders will receive $73.50 in cash for each share of the company they own. The transaction is expected to close in approximately three months.
Robbins Umeda LLP’s investigation focuses on whether the board of directors at Peet’s is undertaking a fair process to obtain maximum value and adequately compensate shareholders. At least four market analysts have released target prices for Peet’s that value the company’s stock between $80 and $95 per share, considerably higher than the value currently being offered by Joh. A. Benckiser as a part of the proposed transaction. Additionally, shares of Peet’s common stock have traded and closed above the current offer price as recently as May 1, 2012, closing on that day at $75.23 per share.
Furthermore, on May 1, 2012, Peet’s reported earnings that represented substantial increases over 2011 figures. Specifically, Peet’s reported net revenue of $94.8 million for the first quarter of 2012, a 7% increase over the $88.5 million in revenue reported during the same quarter of the previous fiscal year. Patrick O’Dea, the President and Chief Executive Officer of Peet’s, also expressed optimism about the company’s continuing growth prospects, stating: “As we previously indicated, we expect to gain significant momentum in the second half as coffee cost inflation abates, and we remain excited about the strategic growth initiatives we’re investing in this year.”
Given these financial results, recent target prices, the performance of Peet’s common stock, Robbins Umeda LLP is examining the board’s decision to sell Peet’s now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Robbins Umeda LLP attorneys highlight that Peet’s shareholders have the option to file a class action lawsuit against the company to secure the best possible price for the company’s shareholders and the disclosure of material information to shareholders so they can vote on the transaction in an informed manner.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.