PEET Peets Coffee & Tea, Inc. (MM)

Diedrich Coffee, Inc. (DDRX) said Tuesday that it has entered into a merger agreement with Green Mountain Coffee Roasters Inc. (GMCR).

Under the deal, GMCR will acquire all of the outstanding shares of Diedrich Coffee for $35 in cash per share.

Diedrich Coffee said it has terminated a merger agreement with Peet's Coffee & Tea Inc. (PEET) and that GMCR has paid Peet's the $8.517 million termination fee on behalf of Diedrich Coffee.

Diedrich Coffee's board had previously said that GMCR's $35 per share, all-cash offer was superior to the terms of the merger agreement with Peet's Coffee.

Peet's failed to submit a new proposal to Diedrich Coffee by the Monday deadline, Diedrich Coffee said.