Dreyer’s Grand Ice Cream, Inc. (NNM:DRYR) Friday (6 July) confirmed that Nestle Holdings, Inc. has acquired 3,400,000 shares of Dreyer’s Grand Ice Cream common stock from General Electric Capital Corporation, General Electric Pension Trust and GE Investment Private Placement Partners I L.P. With this purchase, Nestle will own 9,563,016 common shares, or approximately 24 percent of the total of Dreyer’s common shares outstanding and incentive options to acquire Dreyer’s common shares. Nestle’s common share holdings are subject to the terms of certain standstill agreements which, among other things, limit Nestle’s ownership position to 25 percent of common shares and options outstanding under current circumstances, and prohibit their making any acquisition proposal that would require public disclosure. The standstill agreements expire at the end of 2004, after which time Nestle will continue to be bound by certain continuing restrictions. The entities of General Electric continue to hold 2,399,998 Dreyer’s Grand Ice Cream common shares.
“Our original agreements with Nestle, which we entered into in 1994, permit an increase in their shareholdings up to this level,” said T. Gary Rogers, Chairman of Dreyer’s Grand Ice Cream. “We continue to make rapid progress towards our goal of becoming the preeminent ice cream company in the United States and we are gratified by this vote of confidence in our future by Nestle. At the same time, we remain fully committed to remaining an independent company and would stress that we have no agreement or intent to sell the company to Nestle or any other party. We enjoy a cooperative relationship with Nestle and our other partners, and look forward to creating increased value for all of our shareholders.”
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Dreyer’s Grand Ice Cream, Inc. manufactures and distributes a full spectrum of premium and superpremium ice creams. The Company’s product lines are marketed under the Dreyer’s brand name throughout the thirteen western states, Texas and certain markets in the Far East, and under the Edy’s name throughout the remainder of the United States. Taken together, Dreyer’s and Edy’s is the best-selling brand of packaged ice cream and other premium frozen dairy dessert products in the country. Brands currently manufactured and distributed by Dreyer’s include Homemade, Whole Fruit Sorbet, Starbucks®, Godiva®, Dreamery(TM), M&M/Mars and Healthy Choice®. For more information on the Company and its products, please visit the Dreyer’s websites at www.dreyersinc.com and www.icecream.com.
