Surprise Dr Pepper Merger Leaves Dunkin' Investors in the LurchBy
JAB Holding Co.’s latest bid to expand its food-and-beverage empire has investors in Dunkin’ Donuts feeling left out.
Shares of Dunkin’ Brands Group Inc. suffered their worst intraday drop in more than a year, falling as much as 5 percent to $64.77 after news hit that JAB was pushing into soft drinks with a nearly $19 billion deal to take control of Dr Pepper Snapple Group Inc.
A buying binge by JAB, the investment firm backed by the billionaire Reimann family, has fueled speculation that Dunkin’, with a market value around $6 billion, could be a target. For now at least, the Dr Pepper Snapple deal seems to have thrown cold water on that idea.
JAB bought Panera Bread Co. last year, adding it to a stable of brands that includes Krispy Kreme Doughnuts, Peet’s Coffee and Keurig Green Mountain Inc.