NEW YORK (CBS.MW) -- Shares of Dreyer's Grand Ice Cream gained Thursday after the company reaffirmed its commitment to its $2.8 billion merger with Nestle.

Tim Kahn, Dreyer's chief financial officer, said Wednesday that negotiations with the Federal Trade Commission continue and that the companies are reaching the final stages of the transaction, leaving only its negotiations with the Federal Trade Commission.

"We continue to believe that we will close the transactions prior to mid-June," Kahn said on the conference call.

Dreyer's  dropped $1.05, or 2.1 percent, to $50.05.

Last summer, Nestle and Dreyer's announced plans to merge their ice cream businesses. As part of the deal, Nestle agreed to boost its stake in Dreyer's to 67 percent from 23 percent. Dreyer's in turn said it would issue 55 million newly issued shares.

Nestle markets super-premium ice cream under the Haagen-Dazs brand, while Dreyer's has Dreamery, Godiva and Starbucks ice cream.

Unilever, Nestle and Dreyer's dominate the market for super-premium ice cream, with Unilever holding 38 percent of the market, ahead of Nestle's 36 percent share and 24 percent for Dreyer's.

Unilever (UN: news, chart, profile) owns the Ben & Jerry's brand.

A Dreyer's spokeswoman declined comment. Nestle could not be reached for comment.

Unilever's stock dropped 50 cents to $61.50.

CoolBrands adding ice cream

The $2.8 billion merger of Nestle and Dreyer's hit a roadblock in March when the FTC unanimously rejected the merger because it would decrease competition and could lead to higher prices. 

In an attempt to clear the deal, Dreyer's and Nestle are continuing discussions with the FTC to sell assets, Kahn said. In March, the companies announced a deal to sell certain assets -- Dreyer's Dreamery and whole fruit sorbet brands and the license for Godiva ice cream brands -- to a unit of Canada's CoolBrands International.

To get the deal past the FTC, the companies may also look to sell all their premium brands, including Starbucks. The likely buyer would probably be CoolBrands.

But the companies must prove to the FTC that CoolBrands could operate as No. 3 player in the market, analysts have said.

Ontario-based CoolBrands dominates the yogurt market with brands including I Can't Believe It's Yogurt, Yogen Fruz and Bresler's Ice Cream and Frozen Yogurt.

CoolBrands' potential purchase of Dreamery and Godiva would extend its reach in the ice cream market, CoolBrands co-Chairman Michael Serruya said.

The company cemented its interest in ice cream with its $30 million acquisition of Eskimo Pie Corp. three years ago, Serruya said. The transaction added the Eskimo Pie brand, Weight Watchers and Welch's to CoolBrands' frozen dessert menu

"Ice cream is an arena that we have been playing in for some time," Serruya told CBS.MarketWatch.com. "We believe there is room for growth because the market is very fragmented."

Serruya declined to comment on negotiations with the FTC.

The FTC could settle with the companies, even after seeking to block the deal, Michael Cowie, assistant director of the FTC's merger litigation task force, has said.

The FTC declined comment. Dreyer's declined comment. Nestle could not be reached for comment.