Nestle S.A. is continuing talks with U.S. regulators regarding its proposed $2.8 billion merger with Dreyer's Grand Ice Cream and believes it will be able to clinch a deal in mid-June, a spokesman for the suitor said last week

Food & Drink Weekly, March 10, 2003

Nestle S.A. is continuing talks with U.S. regulators regarding its proposed $2.8 billion merger with Dreyer's Grand Ice Cream and believes it will be able to clinch a deal in mid-June, a spokesman for the suitor said last week. Nestle declined to comment on a report that it has offered to sell the Starbucks ice cream brand, which is part of Dreyer's, to gain approval from the Federal Trade Commission.

In a bid to appease regulators, CoolBrands International, which earlier last week agreed to pickup certain assets from Nestle and Dreyer's, will also take on the Starbucks super-premium ice cream brand, the Wall Street Journal reported. But the companies must convince the FTC that CoolBrands can be a competitive player in the super-premium market. The regulator earlier this week unanimously rejected the merger of Nestle and Dreyer's ice cream business because the transaction would decrease competition and could lead to higher prices.