Franklin Mutual: Would Accept Farmer Bros Share Buy Offer

WASHINGTON -- Franklin Mutual Advisers LLC said Tuesday that it would accept an offer from Farmer Bros. Co. (FARM) to purchase all Farmer Bros. shares at prices in the low $400s per share, according to an amended Schedule 13D filed with the Securities and Exchange Commission.

Shares of Farmer Bros. closed Tuesday at $309.25.

Franklin Mutual said that the offer should be available to all shareholders, with the purchase price payable in cash or "readily marketable" securities.

A representative from Farmer Bros. wasn't immediately available to comment.

Franklin Mutual Advisers holds a 9.6% stake in the company.

In a letter dated Tuesday and addressed to Farmer Bros., Franklin Mutual said the correspondence was confirming a discussion from earlier Tuesday.

"We believe that this price would be acceptable to shareholders of the company and that it would allow the company's retention of sufficient surplus funds to satisfy any reasonable contingency requirements," the letter said.

Farmer Bros. primarily roasts and packages coffee and sells it to restaurants, hotels, fast-food outlets, convenience stores and hospitals.

-By Ben Siegel, Dow Jones Newswires; 202-628-7689

Updated April 29, 2003 6:01 p.m.