Shares of Keurig Green Mountain rose 0.9% in premarket trade Monday, after the single-cup coffee brewer announced a plan to buy back 5.2 million of its shares owned by Luigi Lavazza for about $619.7 million. The price of the repurchase was set at $119.18 a share, or 3% below Friday's closing price of $122.87. Keurig said it amended the common stock purchase agreement it had with Lavazza, to eliminate Lavazza's pre-emptive rights on future issuances of Keurig common stock. Keurig shares have lost 12% over the past three months, while the S&P 500 has gained 2.3%.
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