EMERYVILLE Calif. Peet’s Coffee & Tea Inc. is battling with Green Mountain Coffee Roasters Inc. for the purchase of Diedrich Coffee Inc., and both suitors upped their bids this week to what they valued at $265 million. Both Peet’s and Green Mountain are eyeing Diedrich for its expertise in producing and selling specialty coffees for K-Cups used in Keurig Inc.’s popular single cup brewing system and its roasting capabilities. Keurig is owned by Green Mountain. The acquirer also would pick up ...

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