The Emeryville-based company reportedly held talks with Starbucks about a potential sale. Rumors have floated around the coffee industry for months, but this is the first concrete news reported about the deal.
A takeover by Starbucks would be a dramtic turn in the intertwined history of the two companies.
Forty years ago this month, Bay Area coffee legend Alfred Peet, the founder of Peet's Coffee, inspired a writer, an English teacher and a history teacher to open a coffee shop of their own.
Little did Peet known then that his help would create his company's biggest rival.
Peet's has a market value of $589 million as of Tuesday's market close, according to the wire service.
Word of a deal may have Peet's loyal followers -- Peetniks -- up in arms.