Dreyer's, Nestle Optimistic About Planned Merger
Both Nestle and Dreyer's have said in recent weeks that they remain confident that their $2.8 billion merger will take place, perhaps as soon as mid-June.
Tim Kahn, Dreyer's chief financial officer, said during a recent financial conference call that negotiations with the Federal Trade Commission continue and that the companies are reaching the final stages of the transaction.
"We continue to believe that we will close the transactions prior to mid-June," Kahn said late last month.
Last summer, Nestle and Dreyer's announced plans to merge their ice cream businesses. As part of the deal, Nestle agreed to boost its stake in Dreyer's to 67% from 23%. Dreyer's in turn said it would issue 55 million newly issued shares.
The proposed deal hit a roadblock in March when the FTC unanimously rejected the merger because it would decrease competition in the superpremium category and could lead to higher prices. In an attempt to clear the deal, Dreyer's and Nestle are continuing discussions with the FTC to sell assets, Kahn said. In March, the companies announced a deal to sell certain assets - Dreyer's Dreamery and Whole Fruit _Sorbet brands and the license for Godiva ice cream brands - to a unit of Canada's CoolBrands International.