Coffee Maker Keurig Buys Back Shares From Lavazza

(RTTNews) - Specialty coffee retailer Keurig Green Mountain Inc (Keurig), said it has recently agreed to repurchase about 5.2 million of its shares from Italian peer Luigi Lavazza S.p.A.

Keurig also said it would amend a relevant clause that snatches Lavazza's rights over future stock offerings of the company.

Detailing the deal struck on Saturday, Keurig said it would repurchase the shares from Lavazza at $119.18 per share, a 3 percent discount from the closing price on Friday. Keurig said the buyback will be financed through cash balances and existing credit facility.

Keurig would also amend the August 2010 stock purchase agreement with Lavazza, and thereby eliminate Lavazza's preemptive rights on future issuance of Keurig stock.

The amendment would become effective as of the closing of the stock repurchase, said Keurig, the maker of the K-Cup single-serve coffee pod.

Lavazza, to fund acquisitions, cut its stake in Keurig to 6.6 percent as of February 4 from 7.8 percent as of January. Lavazza has offered more than 600 million euros for French coffee brands L'Or and Grand Mere.

The French coffee brands were on the block in order to facilitate a merger of Mondelez International's coffee business with Dutch company D.E. Master Blenders 1753.