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Douwe Egberts owner boosted as German investor eyes €6.4bn bid Douwe Egberts owner boosted as German investor eyes €6.4bn bid
(35 minutes later)
German investor Joh A Benckiser (JAB) is in talks over a €6.4bn deal (£5.4bn) to buy the owner of Douwe Egberts coffee and bolster its position in a hot drinks industry benefiting from innovation and emerging market growth.German investor Joh A Benckiser (JAB) is in talks over a €6.4bn deal (£5.4bn) to buy the owner of Douwe Egberts coffee and bolster its position in a hot drinks industry benefiting from innovation and emerging market growth.
Shares in Dutch coffee and tea firm DE Master Blenders leapt over a quarter on Thursday after it said it had received a bid proposal from JAB, the investment vehicle of the billionaire Reimann family which is already its top shareholder.Shares in Dutch coffee and tea firm DE Master Blenders leapt over a quarter on Thursday after it said it had received a bid proposal from JAB, the investment vehicle of the billionaire Reimann family which is already its top shareholder.
JAB has been building a portfolio of brands including Caribou Coffee and Peet's Coffee & Tea to become a powerful player in an industry fuelled by new products such as single-serve coffee brewers and increased demand from emerging middle-classes in developing markets.JAB has been building a portfolio of brands including Caribou Coffee and Peet's Coffee & Tea to become a powerful player in an industry fuelled by new products such as single-serve coffee brewers and increased demand from emerging middle-classes in developing markets.
DE Master Blenders, whose brands include Senseo coffee pods and machines as well as Douwe Egberts and Pickwick tea, was spun off last year by US group Sara Lee, now known as Hillshire Brands, and is the third largest global coffer firm after US-based Kraft Foods and Swiss market leader Nestlé.DE Master Blenders, whose brands include Senseo coffee pods and machines as well as Douwe Egberts and Pickwick tea, was spun off last year by US group Sara Lee, now known as Hillshire Brands, and is the third largest global coffer firm after US-based Kraft Foods and Swiss market leader Nestlé.
The Dutch firm has struggled to benefit from a growing global industry, in part because of its exposure to austerity-hit European markets.The Dutch firm has struggled to benefit from a growing global industry, in part because of its exposure to austerity-hit European markets.
"We would envisage a very high chance of a transaction here," said research firm Olivetree, indicating JAB already owned at least 15% DE Master Blenders and other bidders had not surfaced at the time of the spinoff. "We would envisage a very high chance of a transaction here," said research firm Olivetree, indicating JAB already owned at least 15% of DE Master Blenders and other bidders had not surfaced at the time of the spinoff.
However, they said Mars and Tchibo had been mooted as potentially interested parties.However, they said Mars and Tchibo had been mooted as potentially interested parties.
DE Master Blenders said it had agreed to open its books to JAB based on its proposal to pay €12.75a share on a fully-diluted basis, including any future dividend, but that talks were at an early stage and there was no guarantee of a deal. DE Master Blenders said it had agreed to open its books to JAB based on its proposal to pay €12.75 a share on a fully-diluted basis, including any future dividend, but that talks were at an early stage and there was no guarantee of a deal.
A spokeswoman for JAB declined to comment.A spokeswoman for JAB declined to comment.