10 April 2007 - The race for the acquisition of Canadian coffee firm Van Houtte is moving on as the Tata Group in India has pulled out, reports the Indian business press.
A Tata spokesperson said the company had a look at the assets and decided not to go ahead.
Investment bankers cited by the press reports said that a higher valuation of Van Houtte explains Tata's withdrawal from the USD 500 million auction.
In March, FLEXNEWS reported that Van Houtte was likely to be acquired by a foreign company rather than by a domestic player. The companies listed then, besides the Tata Group, were Sodexho Alliance (France), Green Mountain Coffee Roasters Inc. (USA), Segafredo Zanetti (Italy), Sara Lee Corporation (USA), Kraft Foods (USA), and private equity fund Thomas H. Lee Partners LP (USA).
However, in late March, the Tata Group said it might be interested in another company: Cadbury Schweppes' beverages business.