Antitrust regulators request more info about Green Mountain Coffee’s offer for Diedrich

Regulators further probe Green Mountain, Diedrich

WATERBURY, Vt. — Green Mountain Coffee Roasters Inc. said Wednesday that antitrust authorities have requested more information about its proposed acquisition of Diedrich Coffee Inc.

Green Mountain and coffee roaster and wholesaler Diedrich said they expect to respond promptly to the second request for information from the U.S. Federal Trade Commission.

The companies expect to complete the $35-per-share buyout this year.

The offer to acquire Irvine, Calif.-based Diedrich is to expire Feb. 5, but Green Mountain said it would extend that if necessary to comply with the government’s inquiry.

Green Mountain shares rose 31 cents in after-hours trading to $85.99, after closing up $5.07, or 6.3 percent, at $85.68 on Wednesday. Diedrich shares fell 42 cents, or 1.2 percent, to $34.28, after closing down 8 cents at $34.70.

Green Mountain bought the Tully’s Coffee brand and wholesale coffee business from Tully’s Coffee Corp. in March 2009 for $40.3 million.

The company bought Toronto specialty coffee company Timothy’s in November 2009 for $157 million, including the Timothy’s World Coffee brand and wholesale business but not the retail operations.

Green Mountain extended a deadline this month to buy the outstanding shares of Diedrich.

Peet’s Coffee and Tea had agreed to buy Diedrich before Green Mountain stepped in, but Green Mountain paid Peet’s an $8.5 million termination fee.