EMERYVILLE (CBS / AP) — Shares of Emeryville-based Peet’s Coffee & Tea Inc. rose for a second-straight day Wednesday as talk spread that the Bay Area company was considering a deal with Starbucks Corp.

The cable television business channel CNBC reported that Peet’s recently held talks with Starbucks about a potential sale to the large coffee shop chain. Details were scarce, and it’s not clear such a deal could succeed. But the rumor was enough to move shares.

Starbucks declined to comment, and Peet’s did not immediately respond to requests for comment.

Rumors have long circulated about deals between the two companies. Starbucks also has recently grown more aggressive with its plans, particularly in the single-serve market, where Peet’s has indicated it wants to focus.

Shares of Peet’s have risen a combined 11.5 percent the past two days and closed Wednesday at $47.61. They have traded between $33.20 and $49.24 in the past 52 weeks.

Starbucks shares closed down 72 cents, trading at $35.00 on Wednesday.

(Copyright 2011 by CBS San Francisco. All Rights Reserved. The Associated Press contributed to this report.)

Comments (6)
  1. Bloodhounds says:

    I would hate to see that happen! Starbucks is a huge chain and Peet’s is a Bay Area Co. If it does happen atleast Starbuck’s would finally have some good coffee!

  2. curious says:

    I agree with you Bloodhound. There’s a reason there are TWO compnies. I grew up & LIVE Peet’s over Starbucks & drive out of my way to go to a Peet’s, even though there are at least 3 SB’s near me. and this is not easy as I have twins under 2. I sure hope it stays just a rumor!!

  3. Pucktuck says:

    Agree, agree, agree

  4. Bayareas connoisseur says:

    Bay area’s connoisseur

    Peet’s is the only perfectly roasted coffee around; Starbucks lost it years ago, and they were not half as good as Peet’s. Any true coffee connoisseur will express the same taste differences. May it never be so. I will drive ten miles for a Peet’s over a Starbucks everytime.!

  5. joeman says:

    If Starbucks is smart, which appears to be so after they fired the last CEO and turned things around, the take over should be transparent. What that means to us is that they should keep Peet’s exactly the way it is as if they were never bought-out. Of course, they will probably expand Peet’s nationwide and internationally but keep the number of branches low and far apart to keep it exclusive. In other words, GAP is Starbucks and Banana Republic is Peet’s.

  6. John Earnest says:

    This seems like a brilliant move, and i bet it was more orchestrated by Peet’s than by Strabucks…everyone know’s Alfred Peet’s gave his blessing as his underlings went out and started Starbucks. It was Peet’s beans they originally used! Anyway, brilliant i say. Way to go, Peet’s!

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