Coffee Company Says Nuts to Sara Lee

Chock Full O’ Nuts Corp. rejected a bid by Sara Lee Corp. to buy the coffee maker for $10.50 a share, calling the offer “inadequate.” Chicago-based Sara Lee disclosed earlier in a regulatory filing that it has acquired a 5.3% stake in Chock Full O’ Nuts and is seeking to buy the rest of the New York-based company for at least $10.50 a share. The offer represents a premium of nearly 65% over Chock Full O’ Nuts’ current share price of $6.38. The shares have fallen 14% during the last year. Sara Lee is a leading supplier of coffee to food service firms and generated $2.8 billion in sales through its coffee and tea operations for the fiscal year ended last June. Sara Lee shares fell $1.88 to close at $24 and Chock Full rose 38 cents to $6.38, both on the NYSE.