Krispy Kreme's Dutch coffee-and-donuts deal not so sweet: report
Vote No on $1.3B JAB offer, says Egan-Jones
The Berwyn-based credit rating agency Egan-Jones is recommending investors vote against Krispy Kreme's proposed $1.3 billion, $21/share sale to JAB Holdings BV, the Dutch company that owns the Peet's and Caribou coffee chains and Einstein Noah bagels, at a special shareholder meeting July 27.
Egan-Jones doesn't challenge the price, which a separate Wells Fargo & Co. report notes is well within the range of other recent restaurant-chain deals, and more than 50 percent above Krispy Kreme's recent trading price (though still below the stock's earlier highs.
Instead, Egan-Jones complains that, by selling now, Krispy Kreme shareholders:
- Lose all chance of a much higher price if Krispy Kreme stays independent;
- Are blocked by terms of the JAB deal from accepting any higher bids;
- Will have to pay taxes on any proceeds.
Egan-Jones also urged investors to vote against the $3 million bonus CEO Tony N. Thompson wants to collect, on top of his $6.1 million cash and stock package for 2015.
Several shareholders have sued in Krispy Kreme's home state of North Carolina in an attempt to block the deal.