Investor interest in Teavana Holdings Inc. TEA -0.06% is
brewing, as the loose-leaf tea retailer—expected to report earnings
Monday—prepares to be acquired by Starbucks Corp. SBUX -0.11%
Many brewers dream of one day being swept off the market by
the coffee giant. But Teavana has faced backlash from analysts who indicated
that Starbucks could do better, and from short-sellers who have speculated that
the deal would fall through, alleging problems with Teavana's tea quality.
Starbucks said last month that it would pay $620 million in
cash for the Atlanta-based tea retailer—representing the coffee chain's largest
acquisition. Starbucks paid just $8.1 million for its Tazo tea brand in 1999. Starbucks on Wednesday reaffirmed its agreement
to acquire Teavana, saying that the deal would "jump-start the next wave
of growth in the tea category," with the combination of Starbucks's
experience in brewed beverages and real estate with Teavana's
"best-in-class retail store unit economics."
Read all about it at http://online.wsj.com/article/SB10001424127887324640104578165202798136008.html
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