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Dispute With Kraft Puts Off Anticipated Acquisition By Starbucks

The ongoing dispute between Starbucks and Kraft is likely forestalling any potential acquisition by the coffee company but that hasn't stopped speculation on who Starbucks is after. Among the contenders are Peet's Coffee & Tea, Green Mountain Coffee Roasters as well as milk distributors and even Williams-Sonoma, which Starbucks was rumored to have bid on more than a decade ago.

Although Starbucks has $1.2 billion in cash and a market capitalization of $24 billion, its nasty legal battle with Kraft could cost $1 billion or more, according to one analyst. Starbucks is trying to end a 12-year relationship in which Kraft distributes its coffee to groceries, but Kraft says the coffee company must pay to get out.

On Monday, Kraft sought a preliminary injunction in the U.S. District Court for the Southern District of New York to prevent Starbucks from behaving as though their agreement has ended.

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