3:32 PM PST Thursday March 20

Dreyer's shareholders approve sale to Nestle

Shareholders of Oakland-based Dreyer's grand Ice Cream Inc. (Nasdaq:
DRYR) sent a message to federal regulators Thursday by approving the
company's proposal to merge with Swiss food giant Nestle SA.

[snip]

The news comes on the heels of statements from Federal Trade Commission
Chairman Timothy J. Muris, who said the agency is investigating whether
the two companies "have a viable remedy" to the FTC's antitrust concerns
regarding the merger. Earlier this month, the agency's commissioners
said they'd challenge the $2.8 billion deal on the grounds that it would
reduce competition for super-premium ice cream.

On the day the FTC announced its opposition to the merger, Dreyer's
announced a deal to sell its Dreamery, Whole Fruit Sorbet and Godiva
brands to CoolBrands International Inc. of Canada. The deal also
included distribution assets in seven states. The companies reportedly
threw the Starbucks brand - which Dreyer's produces under license from
the Seattle-based coffee giant - into the mix to sweeten the deal.

Muris said the FTC might accept a divestiture to remedy the problem of
leaving just two major players in the high-end ice cream business. The
other player is Unilever, which owns the Ben & Jerry's brand that is
distributed by Dreyer's.

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