by Marc Bastow | June 11, 2013 11:37 am
Dole Food (DOLE) Chairman and CEO David Murdock reportedly has made an offer to buy up the 60.5% of Dole shares he does not currently owned in order to take over the entire company.
Murdock’s unsolicited bid comes in at $12 per share, an 18% premium to Dole’s share price at the close of business on Monday, and the stock is up over 21% — over the offering price — in Tuesday’s early morning trading.
Doles Board of Directors will meet in the next few weeks to mull over the offer, indicating it’s in the early stages of reviewing the offer, with no timetable set for a response.
Dole’s most recent (2012) fiscal results showed $4.2 billion in revenue, with a loss of over $144 million. In its Q1 ’13 report the company reported a net loss from continuing operations, and revenue below Street estimates.
In April the company indefinitely suspended its $200 million share repurchase plan, suggesting the cash could be put to better use in expanding its shipping fleet. The company sold its packaged foods and Asia fresh business in April for $1.69 billion.
Written by Marc Bastow, Assistant Editor at InvestorPlace.com. As of this writing he did not hold a position in any of the aforementioned securities.
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