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Peet’s Seen Tempting Starbucks to Top Richest Java Bid: Real M&A

Peet’s Coffee & Tea Inc. has investors wagering rival bidders will attempt to top a $1 billion takeover offer that’s already the most expensive U.S. beverage deal.

Peet’s traded as much as 3 percent above the $73.50-a-share bid from Joh. A. Benckiser last week, signaling some traders who bet on acquisitions expect the Emeryville, California-based company to be sold at a higher price. Including net cash, the $941 million offer values the owner of specialty cafes and grocery products at 21 times earnings before interest, taxes, depreciation and amortization, the richest multiple for an American maker of non-alcoholic drinks in deals larger than $500 million, according to data compiled by Bloomberg.